- Aligning a brand with a celebrity can be risky.
- Last year, a number of stars suffered reputational damage that affected their business partners.
- Going into 2025, brands must be more thorough and savvy when deciding who to partner with.
Celebrity brands can be as risky as they are glamorous, and last year was no exception.
The most serious scandal — and dramatic financial downfall — was that of Sean Combs, who was charged with sex trafficking and racketeering, allegations the rapper denies.
But other A-listers, like Blake Lively and MrBeast, faced reputational damage in 2024. Their unravelings — and the effects they have had on their businesses and partners — show just how dangerous it can be to rely on star power to propel a business.
"2024 taught us that no creator — no matter the scale of their success or support — is immune from controversy," Nate Harris, a VP at creator marketing platform CreatorIQ, told Business Insider.
For decades, Combs exemplified how a star can monetize their fame. However, since he was first accused of rape and abuse in November 2023, his fall from grace has been swift, and his businesses have taken hit after hit.
Diageo, his partner of more than a decade, said it best: "Mr. Combs is well-aware that these lawsuits make it impossible for him to continue to be the 'face' of anything," lawyers for the liquor giant wrote in a letter to a judge after the sexual assault lawsuits started pouring in.
Diageo is now reportedly considering offloading Cîroc, the vodka brand Combs represented. It may be a tough sell given its synonymity with Diddy, who has denied any wrongdoing.
"Combs went from cultural icon to cautionary tale in record time," Stacy Jones, the CEO of the branding agency Hollywood Branded, told BI.
But celebrity fallout — and the toll it has on a business — does not have to be so pronounced.
Take the Blake Lively backlash. Upon the premiere of her film "It Ends With Us," the actor faced an onslaught of negative press and social media attacks, calling her difficult to work with and resurfacing unflattering clips of her past behavior.
Whether justified or not — Lively has sued Justin Baldoni, her costar and director, saying he conducted a retaliatory smear campaign — the attacks had a negative effect on her hair care line Blake Brown, the company said in a report cited by The New York Times. The hair care line said it lost as much as 78% of its sales, according to the Times.
Blake Brown is a joint venture with Give Back Beauty, a celebrity brand incubator. Give Back Beauty, Blake Brown, and representatives for Lively did not respond to BI's requests for comment.
Similar reputational damage came for Jimmy "MrBeast" Donaldson, the world's most popular YouTube star who was set to break through into traditional media this year with the Amazon Prime show "Beast Games."
While Amazon has not disclosed the show's budget, Donaldson said the series cost more than $100 million. Amazon hoped it would attract advertisers to the platform.
"Beast Games" was marred by controversy for months before it debuted. Contestants said they sustained injuries and complained about what they described as a lack of medical care and food on set at a preliminary shoot for the show in Las Vegas. The show was also received negatively by critics, earning a 14% on Rotton Tomatoes.
"The MrBeast promotional video shoot, which included over 2,000 participants, was unfortunately complicated by the CrowdStrike incident, extreme weather, and other unexpected logistical and communications issues, which we reviewed, and are grateful that virtually all of those invited to Toronto enthusiastically accepted our invitation," a representative for MrBeast told BI, adding that they "continue to comply with standard industry rules and regulations."
While it is performing well, according to Amazon's own rankings, the entire ordeal was a headache for the tech company — and it may turn out to cost the streamer. One Amazon insider told BI that they believed the negative press affected ad sales. A number of "Beast Games" contestants also filed a lawsuit against the company, alleging sexual harassment and pay issues, among other complaints.
MrBeast's representative said he has not been served, but declined to comment further on the lawsuit.
Amazon did not respond to a request for comment from BI.
Celebrity bright spots
To be sure, some brands had blockbuster years. Selena Gomez's Rare Beauty is reportedly receiving investment offers at a billion-dollar valuation, and Kim Kardashian's Skims opened its own brick-and-mortar stores.
Those success stories may be reason enough for brands to continue to partner with celebrities or investors to put money into celebrity businesses.
Going forward, more caution will be taken when choosing partners and deciding whether to maintain those partnerships, Harris and Jones said.
Part of that means properly vetting celebrities or influencers by using tools that assess the online sentiment — positive or negative — around those stars and whether they align with the current cultural moment.
Brands are more often evaluating partners based on their content around politics, competitor mentions, profanity, illicit substances, and sensitive social issues.
And when a celebrity does go out of line, brands will be more proactive in distancing themselves.
"Brands are increasingly swift in cutting ties with problematic figures to protect their own integrity," Jones said.
"Audiences understand that brands aren't always to blame for a celebrity's actions, but they expect clear, thoughtful responses when controversies arise," she added.
