Is Donald Trump’s business empire as Teflon-coated as his hair appears to be?
Trump has found himself on the receiving end of the catchphrase he made famous on his reality show The Apprentice â€" “You’re fired!†â€" after NBC dumped the real-estate mogul Monday over comments he made about immigrants during his presidential campaign kickoff speech earlier this month. The flap has some wondering if the backlash may spill over to his globe-spanning empire of real-estate properties. But other experts say NBC’s dramatic action simply gives “The Donald†more of the attention and publicity he craves.
What he said
Trump, in announcing on June 16 that he was seeking the Republican Party nomination for the 2016 election, described migrants from Mexico to the United State s as drug-runners and rapists. “They’re bringing drugs, they’re bringing crime, they’re rapists, and some I assume are good people,†he said in opening his campaign at Trump Tower on Manhattan’s Fifth Avenue.
The response
Univision: Last Thursday, Spanish-language network Univision severed ties to the Miss Universe Organization, which is jointly owned by Trump and NBCUniversal, and said it would not air the Miss USA pageant set for July 12. “At Univision, we see firs thand the work ethic, love for family, strong religious values and the important role Mexican immigrants and Mexican-Americans have had and will continue to have in building the future of our country,†the company said in a statement.
NBC: The network came under public pressure for its business dealings with Trump; by Monday, a Change.org petition asking NBC to fire Trump had collected more than 200,000 signatures. The Comcast Corp.-owned network said Monday it would no longer air the Miss USA and Miss Universe pageants. “At NBC, respect and dignity for all people are cornerstones of our values,†NBC said in a statement.
Televisa: The Mexican media giant, a part-owner of Univision, said Monday that Mexico would not send a contestant to this year’s Miss Universe pageant. “For Televisa, any commercial relationship with the Miss Universe pageant and with the companies of the Trump organization is unacceptable,†Televis a said in a statement.
Ora TV: The production company â€" controlled by Mexican telecom billionaire Carlos Slim, co-founded with TV personality Larry King and funded by America Movil â€" announced Monday that it was cancelling a program it was working on with some of Trump’s companies.
His counter-response
On the incendiary comments: Trump later said that his remarks were directed at U.S. policy makers, not the Mexican government or its people.
On Univision: A lawyer for Trump said last week that he plans to sue Univision for dropping the Miss USA pageant.
On NBC: Trump said he anticip ated losing the business relationship with NBC and that he’s not apologizing for his statements. “I told NBC I could not change my stance,†Trump said in Chicago on Monday. “The fact is that my stance on immigration is correct.†Trump took an even harder tone in a statement issued by his company in New York: “If NBC is so weak and so foolish to not understand the serious illegal immigration problem in the United States, coupled with the horrendous and unfair trade deals we are making with Mexico, then their contract violating closure of Miss Universe/Miss USA will be determined in court.â€
Will it hurt him?
Trump has said his net worth totals $8.7-billion, though Forbes magazine’s analysis of billionaires pegs it at about $4.1-billion. Here’s a look at his various holdings and how the recent controversy may affect them.
TELEVISION
While TV revenue is just a small part of Trump’s billions, NBC’s decision was the sudden end of a long-running relationship. The Apprentice debuted in 2004 and was a smash, making Trump a familiar figure in many American living rooms. In recent years its spinoff, Celebrity Apprentice, was a modest performer but a reliable part of NBC’s schedule as the network fought to get out of the ratings cellar. The network plans to try to continue Celebrity Apprentice without Trump as its colourful centre, but a previous effort, 2005’s short-lived The Apprentice: Martha Stewart, failed to find an audience.
Despite the loss of his NBC deal, Larry C hiagouris, marketing professor at Pace University in New York, said it’s likely that after his presidential bid winds down that Trump will wind up with a show on another network. “I bet you’ll see a Trump brand show of some kind on CBS or ABC or FOX,†he said. “The Trump name still brings attention and eyeballs.â€
REAL ESTATE
Trump says that his ownership stakes in real estate are worth $5.3-billion, ranging from the Trump Tower in New York to the Mar-a-Lago golf club in Palm Beach, Fla.
“This is a blip on the radar,†said Stefani Markowitz, president of the New York-based brokerage Rutenberg. “And there is little question th at his real estate holdings not only won’t be affected, but will continue to rise.â€
Others say Trump’s comments about Mexicans and other ethnic groups could hurt him in closing real-estate deals in the future. Don Peebles, a real-estate developer with a $5-billion portfolio of properties, said he vehemently disagrees with Trump’s comments and said government officials involved in public-private partnerships might be wary of conducting business with Trump.
HOTELS
Trump manages or lends his name to nine hotels marketed as the Trump Hotel Collection. They inc lude properties in Toronto, New York, Chicago, Las Vegas and golf resorts in Florida and Ireland. Another four properties are under development, including one in Rio de Janeiro and one in Washington, D.C.
Chris McGinnis, founder of travel news and advice site TravelSkills.com, said it’s not likely the comments will affect the hotel business. “Business travellers may find what he said distasteful, but if their meeting is across the street from a Trump hotel, that’s likely where they will stay,†he said. “There are plenty of people who do not like the politics of the Marriott family, but that clearly has had little impact on that chain.â€
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