After Donald Trump became president in 2017, questions arose about the financing behind his golf empire. Rumors of money coming from Russia circulated, but Forbes dug deeper to reveal the true sources of the funds.
Many media outlets tried to uncover the mystery, examining the hundreds of millions Trump invested in golf properties without finding where the money came from. Forbes’ investigation revealed that a significant portion of the financing, around $250 million, came from initiation deposits paid by members of Trump’s private clubs. These deposits did not require interest payments or mortgage filings, making them a cheap and hidden source of funds.
In addition to member deposits, over $450 million came from various windfalls like loan repayments, tax refunds, and property refinancings. Trump also used his own cash, nearly depleting his liquidity to revamp European golf resorts and support his presidential campaign. Despite the risks, Trump’s golf and club portfolio is now valued at an estimated $1 billion and is the fastest-growing part of his real estate empire.
The financing of Trump’s golf business has been a topic of speculation for years, especially after comments made by Eric Trump about funding from Russia. Bank records revealed that Trump received significant amounts of money from unknown sources, including non-operating income like tax refunds and insurance settlements. This influx of cash allowed Trump to make large investments in properties like Trump National Doral in Miami, Turnberry in Scotland, and Doonbeg in Ireland.
As Trump entered the White House, the spending on golf properties slowed, and the business began to stabilize. With the repayment of member deposits and a reduction in real estate development expenses, Trump’s golf empire became a lucrative segment of his portfolio. Today, Trump’s clubs generate enough income to cover liabilities, with minimal bank debt remaining.
Despite ongoing scrutiny of his funding sources, Trump’s golf business is now the least risky part of his portfolio. The financial strategies he used ultimately ensured the success and profitability of his golf empire, making it an unlikely target for any illicit financial activities. The mystery behind Trump’s golf financing has been solved, shedding light on the true sources of the funds that fueled his successful golf business.