Yahoo Sports Report: Donald Trump may be overstating value of golf holdings
Dallas Mavericks owner Mark Cuban recently referred to Donald Trump as a "paper tiger" when the presidential candidate claimed he was worth somewhere in the area of $10 billion.
According to a CNBC report, Cuban may have a point: Trump might be fudging some numbers on how he scores the worth of his golf holdings.
In a financial disclosure filing required of all presidential candidates, Trump declared his golf holdings to be worth anywhere from $550 million to more than $675 million. Trump owns 16 properties around the world and manages other courses under his licensed moniker. He values 10 of them worth at least $50 million, another between $25 million and $50 million and four others in the range of $5 million to $25 million.
However, Trump claims the holdings, excluding the Doral resort near Miami, pull in $160 in combined annual revenue, and industry evaluators suggest a course is typically worth anywhere from 1 to 1.5 times annual revenue. In other words, Trump's 15 golf holdings excluding Doral should be worth anywhere from $160 million to $240 million.
Trump, who did not comment on the CNBC piece, typically believes that the millions he pours into capital improvements at his properties raises their value exponentially. That's typically not the case in the industry, where improvements are aimed at improving overall traffic or membership, but not necessarily to increase the value of the property.
Ryan Ballengee is a Yahoo Sports contributor. Find him on Facebook and Twitter.
