That Deal Tom Barrack Talked About? Trump Took a Bath On It.


Tom Barrack is now telling us about the time he sold Trump the Plaza Hotel. “He played me like a Steinway piano,” Barrack said. Trump was a steely-eyed negotiator, a tiger in the jungle.

Who is he kidding? The Plaza Hotel was a disastrous deal—for Trump. Trump went with his gut and overpaid enormously. He bought it for $407 million—far more than it was worth at the time—spent over $50 million in renovations, and then, when he was going through bankruptcy proceedings, was forced to sell it in a deal that valued the hotel at $325 million. Barrack and his boss took Trump to the cleaners.

What’s more, Barrack was highlighting the absolute worst part of this deal: that Trump was so eager to get the hotel that he agreed to forego normal due diligence and instead allowed Barrack to just give him a list of stuff that needed fixing. It was massive negligence on Trump’s part. If Harvard has a list of the worst, laziest deals ever made, this one would make the top ten list.

Yet this is the example they’re touting to show what a great businessman Trump is? That takes real balls. It’s a testament to the fact that the Trump campaign figures it can just say anything. The Trump hagiography is once again beamed out to millions of people and nobody will ever hold them to account.

$500,000 MATCHING GIFT

In 2014, before Donald Trump announced his run for president, we knew we had to do something different to address the fundamental challenge facing journalism: how hard-hitting reporting that can hold the powerful accountable can survive as the bottom falls out of the news business.

Being a nonprofit, we started planning The Moment for Mother Jones: A special campaign to raise $25 million for key investments to make Mother Jones the strongest watchdog it can be. Five years later, readers have stepped up and contributed an astonishing $23 million in gifts and future pledges. This is an incredible statement from the Mother Jones community in the face of the huge threats—both economic and political—against the free press.

Read more about The Moment and see what we've been able to accomplish thanks to readers' incredible generosity so far, and please join them today. Your gift will be matched dollar for dollar, up to $500,000 total, during this critical moment for journalism.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.