AP
By Mae Anderson
June 30, 2015
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” — “You’re fired!” — after
NBC dumped the real estate mogul Monday over comments he made about
immigrants during his recent presidential campaign kickoff speech.
Trump,
known for his poufy red hair and penchant for provocative remarks, has
never shied away from controversy. But as he launches his 2016
presidential bid in earnest, his latest comments — that some Mexican
immigrants bring drugs and crime to the country and are rapists —
offended many, were denounced by Mexican-American groups and led NBC to
abruptly drop the billionaire.
Mexican media giant Televisa also said it would no longer be doing business with Trump.
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.
“I
think that people have come to expect this kind of behavior from
Trump,” said Robert Passikoff, president of Brand Keys Inc., which
monitors brand equity. “You don’t have to agree with him, but he is one
of the few human brands wandering around anymore.”
Other
personality-based brands have been felled by inflammatory remarks, such
as Paula Deen, the celebrity chef who lost her show and endorsement
deals in 2013 for making racist remarks. But Trump’s empire — and brand
personality — is far bigger than Deen’s, spread across vast hotel and
other real estate holdings.
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 revenues are just a small part of Trump’s billions, NBC’s decision
Monday that it would no longer air the annual Miss USA and Miss Universe
pageants, 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 colorful center, 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 Chiagouris, 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.”
___
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, Florida. Some in the real estate industry see the impact of
his recent comments as minimal.
“This
is a blip on the radar,” said Stefani Markowitz, president of the New
York-based brokerage Rutenberg. “And there is little question that his
real estate holdings not only won’t be affected, but will continue to
rise.”
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.
Real
estate moguls such as the Sultan of Brunei have lost business due to
their political views. Last year, many celebrities and entertainment
industry leaders boycotted the Beverly Hills Hotel and other properties
controlled by the sultan due to the tiny Southeast Asia nation’s
adoption of Islamic Shariah law that called for punishing adultery,
abortions and same-sex relationships with flogging and stoning.
As for Trump, Peebles said, “It’s hard to tell how long the anger lasts and whether there is a residual impact.”
__
HOTEL BRANDS
Trump
manages or lends his name to nine hotels marketed as the Trump Hotel
Collection. They include properties in New York, Chicago, Las Vegas,
Toronto 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. His daughter Ivanka has been very active in the hotels,
personally overseeing recent renovations at one of the New York City
locations.
Chris
McGinnis, founder of travel news and advice site TravelSkills.com, said
it’s not likely the comments will affect the hotel business.
“Business
travelers may find what he said distasteful, but if their meeting is a
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.”
For more information, go to: www.beverlyhillsimmigrationlaw.com
No comments:
Post a Comment