Donald Trump Steps Down from Trump Entertainment Board

This Valentine's weekend brings news of a major casino divorce.  Donald Trump has resigned from the Trump Entertainment Resorts' (TER) board of directors, according to BusinessWeek.  He issued a lengthy press release explaining his decision that took some hard shots at TER's bondholders and current management, explained the disconnect between his global real estate development firm (Trump Organization) and TER, noted the overall decline in AC, and reported that his daughter Ivanka is also resigning from the board.

Could this be the end of the Trump story in Atlantic City?  What about the use of his name (i.e. Trump Taj Mahal, Trump Plaza, Trump Marina)?  Trump noted that the company still has the current rights to "use the name Trump for limited purposes" but left it at that.  I suspect that may change soon.  He also told a reporter that he's taking action to change this & that “I don’t like that my name is still going to be on it.”

The last part of Trump's statement leaves open the possibility that he may jump back into the industry at some point -- I think displaying his attachment to a place where he truly made a mark and has been identified with him for 25 years: 

These are very tough times in Atlantic City. Almost every company is in serious financial trouble. Despite this, I will be watching closely and at some point in the future, I hope to return. I have many friends in Atlantic City and have great respect for the Casino Control Commission and other representatives of the State of New Jersey. Even though I am relinquishing my position on the Board of Directors, I remain very concerned about Trump Entertainment Resorts. I will give strong consideration to saving what was once a great casino hotel operation that bore my name. But unfortunately it is clear that I will have to work from the outside — the existing bondholder control will not permit a brighter future.”

 For those following the ongoing discussions involving TER and its bondholders over the delinquent interest payment, this isn't too much of a shock: the bondholders have been pressing to have him removed for a while.  Sounds like he just took the action himself in a pro-active move that gives him control over the situation. That's understandable. But this is bigger than a financial decision for everyone involved, including long-time Trump employees in AC, and the community itself.  As I wrote about in Gambling on the American Dream, Trump has always had a colorful, brash, controversial, yet dedicated relationship to the city and its casino industry.   The potential ending of this relationship is a notable point in the history of the region's casino years.  

In another way, there's also a certain symbolism to it -- 2008 felt like the ending of something in Atlantic City and this news about Trump affirms that perception.  I'm not talking about the ending of the casino industry there-- that's definitely not happening, despite the decline -- but the ending of a certain aura surrounding the industry and the forced recognition that times have changed dramatically for the seaside casino resort. Significant shifts are necessary just to survive and compete in the new competitive circumstances.  So Borgata and Harrah's both shifted gaming strategy (to positive effect as I blogged here & here), while others are still figuring out how to adapt or are just treading water, barely hanging on (see Resorts, etc.). 

But just as Steve Wynn never seems to be able to completely disconnect from Atlantic City, Trump's statement indicates that he, too, isn't closing the door forever.   As well, this story is certainly not without precedent in business history.   For example --  see the Ted Turner divorce from CNN.  As a historian and scholar of Atlantic City for 8 years now, I've discovered this interesting quality about the place: people just have a hard time disconnecting from it, no matter how bad the experience.  It has a certain ramshackle-chic, paradoxical nature that is both heartbreaking and alluring. 

Businesses are run by people.   They reflect human culture with all its optimism, turbulence, opportunity and loss.  So, more than a business story - the news of Trump's separation from the casino venture he began is a human story, and not just for the principals: it is a human story that reflects, affects and illustrates a community's dreams, desires, achievements and failures.