Former President Donald Trump, who likes to present himself as a savvy businessman, continues to lose money at his golf resorts overseas. According to Business Insider, Trump has had to rely on loans from various Trump-owned vehicles in the U.S. for his properties in Turnberry near Glasgow and Trump Golf Links International in Aberdeenshire to stay afloat. According to the outlet, neither of those properties has turned a profit since the twice-impeached one-term president purchased them. Trump’s overseas golf resorts have been struggling financially for years.
“Turnberry’s parent company Golf Recreation Scotland owes Trump, through various US-registered entities, a total of £113,425,000 (around $160,000,000), according to UK Companies House accounts filed in December,” Insider reports. “Trump International Golf Club Scotland Limited, which owns his Aberdeenshire course, owes Trump £44,400,049, also issued in the form of interest-free loans, according to Companies House accounts.”
“The problem is that Trump appears to have created those loans in British pound sterling — as evidenced by the fact they are all displayed as sterling loans on Companies House,” the report continues. “The Trump Organisation would not confirm or deny this.”
“Unfortunately for Trump, the British pound has declined significantly in value against the dollar in the period since Trump started issuing loans to his golf courses,” the outlet reports.
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“That means that, when and if those loans are eventually repaid to Trump in his native dollar currency, they are going to be worth considerably less than when he issued them,” Insider reports.
“His Aberdeenshire course started racking up debts from the beginning of its operation in 2006 when £1 was worth nearly $2,” the report continues. “Now, £1 is worth just $1.42 (as of June 9).”
“Turnberry’s parent company has also been taking large loans from US-registered entities owned by Trump since he purchased the resort in 2014,” the report adds.
An investment analyst attributed more than $40 million in losses to have been the result of Trump’s failure to “hedge” the loans that he created. “In simple terms, hedging is a common business practice that offsets the risk of price movements like a drop in the value of a currency by fixing the repayment rate for a loan when it is created,” the report adds.
In January, Forbes reported a loss of $90 million at Trump’s European golf resorts.
You can read the full report here.
Featured image via Political Tribune gallery