Legendary businessman Kevin O’Leary recently sounded off on the state of New York following the ruling that former President Donald Trump must pay nearly $355 million in legal damages in his civil fraud case. After the controversial ruling, the “Shark Tank” star cautioned real estate investors not to pursue deals in New York.
O’Leary made these critical statements in New York during an appearance on Fox News’ “Fox & Friends Weekend.” He explained that even removing the politicized “Trump factor” from the conversation, the implications this court ruling could have on the real estate industry are profound. The businessman illustrated the problematic nature of having a judge “arbitrarily” to decide on valuations.
“Forget about the Trump factor,” he said. “It’s not about that. What does this say to everybody that wants to do work in New York and wants to risk capital? … this judge arbitrarily decide[d] that this is the right amount. I don’t understand it. No developer does.” He continued, “It’s an atrocity. It’s an embarrassment, but it’s an assault on real estate.”
O’Leary, who issued similar statements during a Monday evening appearance on Fox Business’s “Cavuto: Coast to Coast,” firmly emphasized that New York belongs on a list of “loser states” that he refuses to do business in. Comparing New York to blue states such as California, he criticized their policies on taxation and burdensome regulatory environment.
“Doesn’t matter what the governor says, New York was already a loser state, like California is a loser state. There are many loser states because of policy, high taxes, uncompetitive regulation,” he stated. “I would never invest in New York now. And I’m not the only person saying that.”
The business icon seemingly defended Donald Trump’s conduct, explaining how it resembles typical negotiations between a bank and a prospective individual or entity seeking debt financing. According to O’Leary, it is commonplace to argue the valuation of assets in this setting.
“You go to a bank and you say, ‘Look, I want to borrow $200 million to build a building’. And they say, ‘What assets do you have that we can secure this loan against?’ And you point to a building you built before, and you haggle, and you argue about the value of that building,” he said.
Many people on social media echoed similar criticisms of New York.”I’m not surprised. When the judicial system is weaponized for political purposes, that creates significant market risk, risk that businesses work very hard to avoid,” one person said. “Nor should any other developer/investor, unless they want to open themselves up to this legal lawfare,” another person commented.
“Good for him but so true who would ever invest in NY and throw you ur money down the drain of a sanctuary sh*t hole. Only way it came back before was BECAUSE OF TRUMP’s investments to begin with!” another person said, voicing their support for Trump’s business presence in the city.
Watch footage of O’Leary explaining his opinions of New York below.
Note: The featured image is a screenshot from the embedded video.
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