Donald Trump Faces Cash Crunch as Legal Penalties Total $540 Million
ICARO Media Group
Trump's lawyers argued this week that it would be "impossible" for him to write a check covering the full amount, indicating that he may need to sell properties at fire sale prices to meet his obligations.
In a failed attempt to lower Trump's bond in the case, his lawyers warned that selling properties would leave him with "no way to recover any property sold following a successful appeal and no means to recover the resulting financial losses from the Attorney General." Trump is also facing an $83 million fine owed to writer E. Jean Carroll, who successfully sued him for defamation and sexual abuse.
Trump's cash position has come under scrutiny, with concerns raised about his ability to pay off his legal creditors. In April 2023, Trump testified that he had "substantially in excess of $400 million in cash." Forbes estimates his current cash balance to be around $413 million, representing approximately 15% of his $2.6 billion net worth.
The estimate is based on Trump and his companies' cash balance of $293,834,128.42 as of June 30, 2021, according to documents filed in the New York attorney general's case in October 2022. This figure was higher than the previous year due to the refinancing of 555 California, a San Francisco tower owned by Trump, and proceeds from selling condo units.
However, it is important to note that a significant portion of Trump's cash, around $90 million, is tied up in entities controlled by his business partner, Vornado Realty Trust. Trump cannot access this money unless Vornado decides to disburse it to him, limiting his liquidity.
Analyzing Trump's financial disclosures and other public records, Forbes identified various sources of cash inflow and outflow. Some notable sources of cash include the sale of 25 condos in the Trump International Hotel Las Vegas tower for over $10 million, the sale of a dozen parking spots at his Chicago skyscraper for $1 million, income from books, speeches, and NFTs amounting to $21 million, the sale of his Washington, D.C. hotel for approximately $375 million, and the sale of his contract to operate a public golf course in the Bronx for $60 million.
Despite these cash inflows, Trump has also paid off several loans totaling -$67 million and incurred aircraft expenses of -$13 million, including maintenance and upgrades for his private jet.
While Trump may be sitting on a substantial amount of cash, it is evident that it is not enough to cover his legal obligations with a simple wire transfer. With several more legal cases on the horizon and ongoing scrutiny from the New York attorney general, Trump must find a financial lifeline soon.
The former president's ability to navigate this cash crunch will be closely watched, as it will have significant implications for his financial standing and the resolution of his legal troubles.