Is Donald Trump really the billionaire he claims to be? At the head of a real estate empire and a total fortune estimated at $2.5 billion by the economic magazine Forbes, the former US president might not be as rich as he claims. At least not for long.
The one who wishes to reconquer the White House next November lacks the funds to pay the exceptional fine of 454 million dollars (418.5 million euros) imposed for having, precisely, overestimated the value of his fortune, in order to be well regarded by banks. If he does not pay the entire amount by Monday, real estate may be seized. The beginning of the end (and bankruptcy) for Donald Trump?
Weakened foundations
Even for a billionaire, money doesn’t grow on trees. And it is not enough for Donald Trump to stoop to raise the necessary sums demanded by the courts. So at least temporarily, this fine for fraud could jeopardize his loot. Especially since the man nicknamed the “real estate tycoon” must also pay a fine of 92 million dollars (84 million euros) to former journalist E. Jean Carroll for defamation. And that’s without counting the upcoming trials, starting with that against ex-porn star Stormy Daniels, the new date of which must also be set this Monday.
“Knowing that his fortune of 2.5 billion is mainly made up of real estate, if we take away around 500 million to run the businesses and we still remove these two fines, it starts to be complicated,” underlines Nicole Bacharan, historian and political scientist, specialist in politics and American society. This is also the argument put forward by his lawyers: this “exorbitant and vexatious” fine that they contest is designed to ruin him. The size of the sum could in fact force him to sell certain assets, undoubtedly at knockdown prices, a first dent in his real estate empire.
A facade storytelling
Donald Trump is a man of many resources, at least that is the image he has built for himself. He could always sell his Wall Street building or the Trump Tower in New York to get some fresh air. But he is so attached to it that “it would tear his guts out,” notes Nicole Bacharan.
If Donald Trump refuses the bankruptcy solution examined by his lawyers in order to respond to court injunctions, it is above all “a question of image”, explains Marie-Cécile Naves, research director at the Institute international and strategic relations (Iris). He sold himself as “the man who made himself, who is turning the corner, it’s his storytelling and he’s taking a hit,” adds the research director. And to infringe on its trademark is to infringe on its brand, period.
Furthermore, Donald Trump may not actually be as rich as he claims. He was removed from the list of the 400 greatest American fortunes of the rank Forbes last October. However, he remains in 1,217th place among the greatest fortunes in the world. In reality, “we don’t really know what he owns, there is too much uncertainty about the real value of his assets,” says Marie-Cécile Naves. This is the whole purpose of the trial which was held in New York: “They [Donald Trump et ses fils] are simply accused of having inflated the value of their assets to make more money (…) Donald Trump is not Bernard Madoff. However, the accused are incapable of recognizing their errors,” judged Arthur Engoron.
Build your campaign
This blurring around the Trump image and brand comes at the worst time for the former host of the show “The Apprentice”. While the presidential campaign is in full swing in the United States, he is running behind donors and lagging behind his rival, Joe Biden. According to New York Timesthe Democratic candidate and his party have a total of 155 million in cash for the campaign, compared to 40 million dollars on the Republican side.
The thunderous candidate “already spends a lot of time meeting potential donors, as much time as he does not devote to campaigning,” notes Marie-Cécile Naves. However, these donors are still cautious, worried that their money could be used to pay legal costs. “Everything is linked between his personal fortune, his debts, his legal affairs and his campaign expenses,” summarizes the research director.
However, a campaign is not won only by the wallet. Donald Trump won over Hillary Clinton in 2016 then that he had spent half as much. Moreover, “with his provocations, he grants himself free media coverage,” remarks Nicole Bacharan. He can also avoid renting a meeting room by organizing his events in his own hotels, and in the process collect the money spent there by his voters. Perhaps not to the point of reaching the billion dollars spent by each of the candidates in the last election.
All that remains is for him to use his legal setbacks as a campaign argument and seduce his electorate through victimization. “A solution that works on his fervent base, but much less on the rest of the voters he needs to win,” warns Marie-Cécile Naves. According to her, “this campaign is full of twists and turns. And anything can still happen.”