Posted on: September 28, 2023, 10:32h.
Last updated on: September 28, 2023, 10:32h.
The Trump Organization, controlled by former President Donald Trump’s family, is set to make a significant profit by selling its lease on a Bronx golf course to Bally’s (NYSE: BALY).
Recent reports indicate that Bally’s will acquire the lease on Trump Golf Links at Ferry Point for a sum of $100 million or more, with plans to eventually develop a casino hotel at the location.
According to sources, negotiations were led by Eric Trump, representing the Trump Organization, who successfully secured the deal at $100 million amidst concerns that a prolonged negotiation process could jeopardize the agreement.
Bally’s, based in Rhode Island, intends to remove the Trump name from the golf course and operate it until it obtains a downstate casino permit, although the outcome is uncertain.
Bally’s Faces Time Crunch
A recent ruling by New York Judge Anthony Engoron holds the Trump Organization liable for fraud, potentially impacting its ability to conduct business in the state. This ruling has the potential to weaken the Trump Organization’s position in its dealings with Bally’s.
However, Bally’s faced its own time constraints. Failure to secure an agreement with the Trump Organization would require Bally’s to purchase the lease under receivership, a significantly longer process.
Having the lease in hand is crucial for Bally’s in its pursuit of a casino license in New York City, as regulators mandate that proposed sites be identified and under contract prior to bidding for permits.
Bally’s Awaits Decision
If an agreement with the Trump Organization is finalized, Bally’s will have fulfilled a key requirement in its quest for a New York City casino license. The operator has also taken steps to gain favor with local leaders by announcing plans for a shuttle bus to increase visitor traffic and dedicating a portion of the golf course as parkland for public use.
After submitting formal bids, Bally’s and its competitors will enter a holding pattern as it could take a year or more for regulators to announce the three winning bids.
Bally’s is now considered a more viable contender following speculation that a scandal involving former MGM Resorts executive Scott Sibella could impact that company’s chances in the bidding process.