Bankruptcy Expert Studies Trump Casinos

7-Nov-2016 4:05 PM EST, by Temple University

Newswise — A new study by a Temple University professor shows that Donald Trump’s casinos in Atlantic City lost more jobs and money than competitors’ casinos, while also going through more bankruptcies than any other major business in America.

Jonathan Lipson, Harold E. Kohn Professor in the Beasley School of Law and a noted expert on bankruptcies, found that the Trump Taj Mahal, the Trump Plaza and the Trump Marina shed half their employees and dropped more than 40 percent of their revenue from 1997 to 2010, when Trump, now the Republican nominee for president, was chief executive officer, board chair and/or the dominant shareholder of each.

Lipson used data from New Jersey Casino Control Commission reports, court filings and other publicly available sources.

While many casinos in Atlantic City struggled during the time period Lipson evaluated, Trump’s lost about 37 percent more employees and 33 percent more revenue on average.

“In head-to-head competition―the same business in the same place and time, facing the same threats―Trump’s casinos performed worse on average than other Atlantic City casinos at creating sustainable jobs,” Lipson wrote in his study, which was the focus of an article in The Wall Street Journal. “His casinos were not the ‘best’ and not even average. They were the worst.”

According to the Journal, Trump’s presidential campaign disputed that Lipson’s findings proved Trump was bad at managing casinos.

Trump himself profited from the casinos, even getting an increase in base salary from $1.5 million to $2 million after a 2004 bankruptcy.

As CEO from 2001 to 2005, he made about $3.2 million per year―more than 120 times higher than the average $26,000 annual salary of other Trump casino employees.

Lipson’s study, “Making America Worse: Jobs and Money at Trump Casinos, 1997–2010,” has been released as a working paper on the Social Science Research Network and was excerpted in the academic e-journal The Conversation. It was also featured on The Huffington Post.

“It’s unusual to have evidence that bears directly on the claims a presidential candidate makes,” Lipson wrote. “Here, we have hard data to judge the very track record on which Trump says he can ‘Make America Great Again.’”

Lipson also published an op-ed in USA Today about how Trump’s bankruptcy tactics helped shape his political style.

Trump’s casinos in Atlantic City have been through four bankruptcies, Lipson noted. No other large business has been through more than three, he said.

“Trump has justified the bankruptcies as ‘an effective and commonly used practice...to restructure a business and ultimately save jobs,’” Lipson wrote. “While that is one reason Congress created chapter 11, the evidence shows that Trump twisted the process to benefit himself, even as the casinos continued to hemorrhage jobs and lose money.”

Lipson said he wanted to learn more about Trump’s casino management after reading about his bankruptcies in The New York Times.

He said he does not expect his findings to sway voters, but said, “I hope they will get people to focus on this issue.”

Filters close

Showing results

110 of 6020
Newswise:Video Embedded newswise-expert-panels-on-covid-19-pandemic-notable-excerpts-quotes-and-videos-available
VIDEO
Released: 18-Jun-2021 2:10 PM EDT
Newswise Expert Panels on COVID-19 Pandemic: Notable excerpts, quotes and videos available
Newswise

Newswise is hosting a series of Expert Panels discussion on unique aspects of the COVID-19 pandemic. This tip sheet includes some notable quotes from the panelists.

Released: 16-Jun-2021 1:10 PM EDT
Establishing Juneteenth As National Holiday is Opportunity to Create "New America"
Binghamton University, State University of New York

The Senate has unanimously passed a bill to establish Juneteenth, a holiday commemorating the end of slavery in the United States, as a federal holiday. This is an historic moment and an opportunity to create a “new America,” according to Anne Bailey, professor of history at Binghamton University, State University of New York and director of the Harriet Tubman Center for the Study of Freedom and Equity.

Newswise: Keeping the peace
Released: 14-Jun-2021 5:55 PM EDT
Keeping the peace
Washington University in St. Louis

New research from Washington University in St. Louis sheds light on how — and in what context — peacekeepers can contain the spread of violence in fragile post-conflict areas.

Released: 8-Jun-2021 12:45 PM EDT
2021 Gov Race is Currently Murphy’s to Lose
Rutgers University-New Brunswick

Governor Phil Murphy currently has a clear path to reelection victory, according to the latest Rutgers-Eagleton Poll.

Newswise: Political science professors sign statement warning of threats to US democracy
Released: 8-Jun-2021 12:10 PM EDT
Political science professors sign statement warning of threats to US democracy
University of Notre Dame

Five University of Notre Dame professors who specialize in different areas of democracy studies recently signed a strong statement of concern issued by the think tank New America warning of the serious threats to democracy in the U.S.


Showing results

110 of 6020

close
3.1095