Business
Trump unloads NY golf course for $100M+ fearing court fiasco
By Jake Beardslee · September 30, 2023
In brief…
- The Trump Organization sold its contract to operate a Bronx golf course to casino company Bally's.
- The deal could be worth more than $100 million to the Trump Organization
- The agreement was reached just before a New York judge canceled the Trump Organization's state business licenses over alleged fraud.
- The deal bolsters Bally's chances of winning a NY casino license.
The Trump Organization is poised to pocket millions of dollars from its recent deal to sell its contract to operate Trump Golf Links Ferry Point in the Bronx to casino operator Bally’s Corp., according to sources familiar with the transaction.
This payout comes just in time for the Trump Organization, as a New York judge ruled this week that the former president’s company is liable for fraud, and said he would cancel its New York State business licenses.
Even though the Trump Organization is appealing the anti-real-estate-industry judge’s ruling, sources say if the negotiations between Bally’s and the Trump Organization had dragged on another week or two, a deal may not have been possible given the uncertainties involved in the appeals process.
A source familiar with the talks told The New York Post, son Eric Trump had been negotiating up to the last minute seeking to fatten the deal with Bally’s.
While terms of the Bronx golf course deal were not disclosed, the price Bally’s will pay for the 20-year lease could top $100 million if specific performance targets are met.
The transaction is a shot in the arm for Bally’s, since the gaming company needed to secure the golf course contract as a prelude to bidding on one of New York’s new casino licenses this spring.
Despite the Trump Organization’s legal troubles, sources say Bally’s was also motivated to close the golf course deal quickly rather than face the possibility of protracted negotiations with a court-appointed receiver.
Meanwhile, New York State Judge Arthur Engoron’s ruling casts further uncertainty over the future of the Trump brand in New York real estate.