Trump Turnberry
Contents
Fast Facts
Underlying Assets: Golf Course and Resort Location: Turnberry, Scotland Purchase Date: April, 2014 Purchase Price: ~$63 million Reported Income: $20,395,000 (<a href="http://ragepath.org/wp-content/uploads/2017/03/trump-fec-financial-disclosure-2015.pdf">2015</a>) Actual Income: ($12,400,000) (<a href="https://www.washingtonpost.com/news/post-politics/wp/2016/10/12/trumps-scottish-golf-resorts-report-2015-losses/">2015</a>) Discrepancy: +$32,795,000 Website: <a href="http://www.turnberry.co.uk/turnberry-golf-scotland">www.turnberry.co.uk</a>
Purchased for $63 Million in 2014
Donald Trump purchased the famous Turnberry golf course in April of 2014. The course had previously hosted the Open Championship four times. Trump reportedly paid $63 million (estimated conversion) to buy the golf course and resort from Leisurecorp. (ABC News, <a href="http://abc7ny.com/sports/donald-trump-to-buy-turnberry/39536/">April 30, 2014</a>)
Trump reportedly paid £35.7 million for Turnberry ($63 million at the 2014 conversion rate). Leisurecorp, a "subsidiary of the Dubai government" had previously purchased Turnberry in 2008 for £52 million and invested £40 million upgrading the property. At the time of the purchase, Trump reportedly vowed not to redevelop the course. (The Telegraph, <a href="http://www.telegraph.co.uk/sport/golf/10797218/Donald-Trump-buys-classic-Open-venue-Turnberry-for-bargain-price-of-35.7m.html">April 29, 2014</a>) It is unclear why the previous owners opted to sell at a total loss of £56.3 million.
Conflicting Income Reports
Trump reported that Trump Turnberry earned income of $20,395,000 in his <a href="http://ragepath.org/wp-content/uploads/2017/03/trump-fec-financial-disclosure-2015.pdf">2015 financial disclosure</a>. Trump <a href="https://www.washingtonpost.com/news/post-politics/wp/2016/10/12/trumps-scottish-golf-resorts-report-2015-losses/">reported to British officials</a> that Turnberry lost approximately $12.4 million in 2015. Trump has told reporters that the discrepancy reflects his decision to report "projected future income" on his campaign finance disclosures, rather than actual income.
Trump said in the interview that the amounts listed in his financial disclosures are based on "projected future income." He attributed the losses to ongoing construction projects and said he has yet to unlock the value in developing the properties for housing. "They’re only losing money because they’re not open," he said. Actually, his golf course and hotel in Aberdeenshire are open as is his hotel in Ireland, although that golf course is only partly open, the rest under renovation. Trump said he’s spending $58 million on Turnberry which he closed last September for refurbishment. (Bloomberg, <a href="https://www.bloomberg.com/politics/articles/2016-02-24/a-look-inside-trump-s-global-deals-exposes-trouble-in-many-spots">February 24, 2016</a>)
Eric Trump has claimed that the figures released by Trump to American voters reflect "gross revenue."
Trump told Bloomberg News, which <a title="www.bloomberg.com" href="http://www.bloomberg.com/politics/articles/2016-02-24/a-look-inside-trump-s-global-deals-exposes-trouble-in-many-spots" target="_blank" shape="rect">first reported</a> on the gap between the reports, that the amounts he listed on his U.S. filings were “projected future income.” Trump’s son Eric, who takes the lead in golf course developments, said in an interview that the U.S. disclosure forms report gross revenue, not net income. He also said the British and Irish courses are losing money only because the Trump Organization is spending aggressively to turn them into leading international resorts. (Washington Post, <a href="https://www.washingtonpost.com/politics/trumps-top-example-of-foreign-experience-a-scottish-golf-course-losing-millions/2016/06/22/12ae9cb0-1883-11e6-9e16-2e5a123aac62_story.html">June 22, 2016</a>)
Ownership Structure
Trump's golf course and resort are owned by a company named Trump Turnberry. Trump Turnberry also owns 100% of Nitto World Co., Limited - a company that has no reported value, no reported income, and no reported assets. Ownership of Trump Turnberry ultimately traces 100% back to Donald J. Trump.
Trump Turnberry:
100% owned by Golf Recreation Scotland LLC
100% owned by Turnberry Scotland LLC
1% owned by Turnberry Scotland Managing Member Corp.
100% owned by Donald J. Trump
99% owned by DJT Holdings LLC
99% owned by The Donald J. Trump Revocable Trust
1% owned by DJT Holdings Managing Member LLC
100% owned by The Donald J. Trump Revocable Trust
(Trump's <a href="http://ragepath.org/wp-content/uploads/2017/03/trump-fec-financial-disclosure-2016.pdf">2016 Financial Disclosure</a>)
The Donald J. Trump Revocable Trust is managed for the "<a href="http://ragepath.org/the-donald-j-trump-revocable-trust/">exclusive benefit</a>" of Donald Trump.
Tournament Canceled Over Trump Controversies
In December of 2015, Scottish officials voted to cancel plans to hold The Open - a prestigious golf tournament - at Turnberry. The decision was a response to Trump's intemperate remarks about ... well... <a href="http://www.independent.co.uk/sport/golf/donald-trumps-turnberry-golf-club-to-no-longer-host-the-open-tournament-amid-anger-over-a6771086.html">read for yourself</a>. 5/1/14: Trump buys Turnberry from Saudis for $63 million
Donald Trump expanded his golf empire with his biggest acquisition yet - Turnberry. Trump announced that he has agreed to buy the picturesque links course and resort on the west coast of Scotland, which has hosted the British Open four times. The Independent in London reported that Trump paid Dubai-based Leisurecorp just over $63 million. Turnberry is the 17th golf property owned by Trump, 12 of them in the United States. (Washington Post, May 1, 2014)
10/12/16: Turnberry reports 2015 losses of $12.4 million
A pair of luxe Scottish golf resorts operated by Donald Trump suffered millions of dollars in losses during 2015, according to recent filings with a U.K. government agency, adding another complication to Trump's pitch for the White House, in which he has frequently emphasized his business acumen. Golf Recreation Scotland Limited, which operates the Trump Turnberry luxury resort in Ayrshire, reported a loss of about 8.4 million British pounds (about $12.4 million at the time) in 2015, according to a filing with Companies House, an agency that collects information from companies and makes it available to the public. The course underwent an expensive renovation that was completed earlier this year. On the filing, Trump's son Eric Trump, who like his father is listed as a director, writes that "the operating loss before depreciation and foreign exchange for the nine months pre closure period" that ended on Sept. 30, 2015, was 254,000 pounds, and the loss for the financial year "before depreciation, amortisation and foreign exchange" was 1.65 million pounds. Eric Trump wrote in the filing that revenue is expected to increase after the renovation. Trump International Golf Club Scotland Limited, which oversees the Trump International Golf Links near Aberdeen, suffered an operating loss of nearly 1.1 million British pounds (about $1.6 million at the end of 2015), according to its filing. According to previous filings for the resort, Trump lost more than 4.7 million pounds dating back to 2012. (Washington Post, October 12, 2016)
