 Donald Trump may get fired as CEO of his casino
More than 27 million people tuned in last Thursday night to watch Chicago entrepreneur Bill Rancic win a $250,000 job with Donald Trump in the final episode of The Apprentice. The phenomenally successful show helped NBC solidify its dominance of the Thursday night lineup. And it gave The Donald a platform from which to promote his office buildings, his resort hotels and - most notably - himself.
Less clear is what viewers got out of The Apprentice, particularly those interested in business careers. While part of the reality show's allure was the tips it provided on how to succeed in the high-powered corporate world, would-be moguls might want to follow them at their own peril.
For starters, the contestants continually bad-mouthed each other. That was especially true for the 14 aspiring apprentices eliminated before the final showdown between Rancic, 32, and financier Kwame Jackson, 29. Many workplace experts say that outside Trump's mock boardroom, such negative tactics don't get employees ahead as much as positive teamwork.
Moreover, in his life outside reality TV, Trump does not set the most inspiring example as a captain of industry.
Consider his gambling business, Trump Hotels & Casino Resorts. It lost $87 million in 2003. In 2002, it settled charges with the Securities and Exchange Commission (news - web sites) involving overstated earnings for 1999. The company's stock has been drifting down since 1996, from a peak $34 a share to $2.26 a share on Friday. Trump's auditors have warned that without new financing, the company, which has $1.8 billion in debt, could be flirting with bankruptcy.
Trump doesn't seem bothered by the risks to shareholders. In an interview with USA TODAY last month, he boasted that his majority stake in the company - the only part of his empire that is publicly traded - amounts to just 3% of his net worth, estimated at $2.5 billion by Forbes magazine. Beyond his shares in the casino operation, Trump owns an array of profitable upscale properties that he says he financed in part by taking cash out of his casino company.
That's not much consolation to investors who've lost money on the casinos, one of which was featured on the final episode of The Apprentice.
To survive, the company is negotiating a $400 million cash infusion with Credit Suisse First Boston under a deal that may require Trump to step down as CEO.
In light of the company's recent performance, investors could justifiably tell The Donald: "You're fired."
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04-19-2004, 10:03 PM
