Trump Jr. Reveals Bally Paid $60 Million for Trump Golf Course Lease
Bally's Corporation (NYSE: BALY) reportedly paid the Trump Organization $60 million to acquire the lease on Trump Golf Links at Ferry Point in the Bronx, New York, as per testimonies given on Thursday by Donald Trump Jr.
The civil fraud case, initiated by New York Attorney General Letitia James, targets the former President's organization, with the accusation that they intentionally exaggerated the worth of their various real estate properties to secure substantial loans from financial institutions.
News surfaced in September that the lease on Trump Golf Links at Ferry Point had been transferred to Bally's, but prior to Thursday, this transaction had not been brought to light in Judge Arthur Engoron's courtroom. Trump Jr. confirmed that his family's company sold the lease to the regional casino operator for $60 million, although he couldn't specify the exact profit margin due to the costs incurred by his organization in managing the property. Some of these costs might possibly be associated with legal fees.
In 2015, the Trump Organization and the city reached an agreement to prolong the lease on Trump Golf Links at Ferry Point for an additional 20 years. The lease was targeted for termination by former New York Mayor Bill de Blasio, a Democrat, in 2021, citing the January 6, 2021, riot at the United States Capitol in Washington, DC. No criminal court has found the 45th president guilty of crimes related to January 6, and in April 2022, a Manhattan Supreme Court judge decided that it was unjust for de Blasio to revoke the deal.
Possibility of a Fair Deal for Bally's
Prior to Thursday, it was speculated that Bally's might have paid anywhere from $100 million to more than that to gain control of the golf course lease, suggesting that the casino operator may have received a fair deal with the $60 million payment.
Both parties were seemingly keen to close the deal. The Trump Organization supposedly approved the agreement as the negotiations had been underway, and if they had pushed for a higher price, the sale might have fallen through. Additionally, Bally's was under pressure to obtain the necessary permits for their New York City casino project.
In a move that may please some left-leaning citizens of New York City, Bally's kept their promise by removing the Trump name from the golf property. The venue is now known as Bally's Golf Links at Ferry Point as per Bally's website.
Eric Trump, reportedly "very tall," is scheduled to continue his testimony on Friday. He is said to be more active in the daily operations of the Trump Organization than is his brother, Donald Jr.
Potential Impacts of Golf Course Transaction
The repercussions of the golf course lease transaction are yet to be determined, although it's plausible that if Bally's paid a fair price, the Trump Organization's perceived shady business practices could be potentially undermined.
Critics from the right argue that the trial is a farce, citing James' campaign pledges and Judge Engoron's contributions to Democrat campaigns in the past. Engoron previously referred to the former president as a "bad guy."
Moreover, real estate experts contend that the prosecution confuses the distinction between appraised and market value. Appraisals are often utilized for tax purposes and are typically significantly lower than market prices. For instance, a house could be appraised at $500,000, yet the owners would likely request $1 million or more if selling to neighboring properties were fetching $1 million.
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Source: www.casino.org
