The assault on the Capitol last week by a pro-Trump crowd will increase pressure on President Trump’s family business at a time when some of his most lucrative assets are already suffering from the pandemic and facing payments from the debt.
One of the Trump Organization’s most loyal partners, German lender Deutsche Bank AG, is moving to distance itself from the president’s business and is unlikely to lend him more money, says a person familiar with the matter. The bank has lent the Trump Organization more than $ 300 million that will mature in 2023 and 2024, forcing the company to refinance debt or pay it off by selling potential assets.
The other risk for the Trump Organization is that some customers will stop sponsoring their businesses, particularly their hotels and golf courses. The company has tried to sell its hotel in Washington, DC, but the pandemic distrusted buyers. The hotel was popular with Mr. Trump supporters and among organizations trying to seek the president’s favor. Business was already expected to decline there once Mr. Trump leaves office.
The Trump Organization’s golf courses and golf courses are particularly important, as they account for nearly half of the company’s annual revenue. The courses are closely related to the president and have used his name to attract customers in a weak golf market. If the courses struggle to attract and retain members, it would weigh on the Trump organization in general.
On Sunday, PGA of America said it was finalizing a deal to hold the 2022 PGA Championship at Trump National Golf Club Bedminster in New Jersey, citing the risk of its brand being affiliated with Mr. Trump. The Trump Organization said the PGA’s decision was a “breach of a binding contract.”