Will Donald Trump Have Enough Cash to Run for President?
Donald Trump wants to make sure you know these two facts: he is a very rich man ($4.1 – $8.7 billion rich depending on who you ask) and that he is the wealthiest presidential candidate for 2016. “I have a total net worth of $8.73B,” he said. “I’m not doing that to brag. I’m doing that to show that’s the kind of thinking our country needs.” But does that mean Trump has enough money to make a legitimate run for President in 2016?
Trump’s wealth matters because rather than rely on rich donors and Super PACs who will ask for future political favors in return, Trump plans to pay for his own campaign run.
Amazingly enough, Trump might not have enough cash to finance a presidential campaign by himself if he plans to compete against the likes of front-runners Hilary Clinton and Jeb Bush.
To put it in perspective, President Obama and his supporters spent $1.1 billion to win in 2012, while Romney spent $1.2B in his losing effort. In both cases, Super PACs and donors were responsible for funding a significant portion of their campaigns.
Fast forward to the 2016 election: Preliminary reports estimate that total spending for the Republican and Democratic nominees’ campaigns could reach $2 billion each.
According to his recently released financial summary, Trump has $302 million (what a paltry amount, right?) in liquid assets. It’s certainly a lot of money, but not enough to run a successful campaign. Most of Trump’s wealth appears to be tired up in real estate, business partnerships and endorsement deals. Those assets, while contributing to his net worth, would do little good unless Trump plans to liquidate or borrow against them.
Yes, even one of the richest men in the world might find himself in the capital market looking for help financing his campaign if he decides to go it alone. And like any type of capital acquisition/growth strategy, it could prove to be a complex venture to undertake.
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