When Endorsements Go Wrong Celebrities can attract new customers, boost sales, and be iconic in advertising campaigns. Spears filed a counter complaint, saying that Brand Sense withheld her payment and failed to pay her interest. According to an unnamed insider, J.K. Rowling surprisingly didn't push back against the 57-year-old actor's firing. Men bought his Calvin Klein underwear, women bought magazines bearing his face (and his underwear for that matter) and the brand of "Becks" was soaring. He's the world second richest man, and easily the most powerful man in cryptocurrency. The New Girl star sued shoe company Steve Madden, claiming they never paid up on an oral agreement for an endorsement deal where they would put out a line of "Zooey shoes and accessories.". While NBA legend Charles Barkley was never fired for his gaffe, it was still pretty embarrassing. ", Even though Barkley could have meant that it was a scam to get paid so much to lose weight (and not that the weight loss program itself was a scam), it was still a bad move. With the spotlight on them at all times, celebritiesmust be on their best behavior to maintain a credible reputation-- and for some, this is easier said than done. 800-226-9766; . Khan also said that he doesnt think theres anything wrong with that, and wouldnt endorse anything he didnt agree with. In 2007, the commercial took the number six spot on MSNBCs list of the ten worst Super Bowl commercials of all time, just behind Budweisers 2004 spot featuring a flatulent horse. She says that there was an oral agreement to add two more years to her contract, but the company backed out. 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Small gestures by celebrities can cause stock prices to plummet and billions to be lost on the stock market. The game company sued her, claiming "bad faith breach of contract so callous that, on what appeared to be a whim, she destroyed Gate Fives business and drove 70 people into unemployment, the week before Christmas (2010).". Pittsburgh Steeler's Rashard Mendenhall was fired from his endorsement deal with Champion Sportswear (owned by Hanesbrands, Inc.) after making controversial tweets. Photo Credit: Courtesy of ABC | Wikipedia. "I'm behind Robyn 100 percent, he said. The hero of the 2008 Olympics, Phelps' image took a bit of a hit when a picture surfaced of him taking a hit off a bong. Weve only heard one side. Apparently, people took this to mean that he wasnt being patriotic. Then the National Enquirer published a magazine cover that claimed that the star was "fired for being TOO FAT!" Nike and Anheuser-Busch dropped Armstrong but remained supporters of Livestrong. Kanye, whats your deal? "This Weight Watchers thing is a bigger scam. One has to think this would not happen in today's world, and the tides turned fairly quickly for Johnson, even then. Kanye West, also known as Ye, considers himself "too big to fail." Now he has proved himself wrong. Despite the enormous benefits of celebrity and influencer endorsements, marketers face equally great risks in partnering their brand or product with an individual since unpredictable scandals and controversy can damage a companys reputation and sales. Family friendly brands Nutella and McDonald's did not renew their contracts with Kobe Bryant after the Lakers star was accused of rape in 2004. Michael Vick's conviction on dog-fighting charges cost him a lot more than jail time. Alley ended her three-year stint as a Jenny Craig spokesperson in 2008 with the claims that she had kept her 75-pound weight loss steady for over a year and was ready to give other spokeswomen, Valerie Bertinelli and Queen Latifah, a shot. Looking way back to 2009, surfacing photos of the competitive swimmer Michael Phelps with marijuana caused some of his major sponsors, including Kelloggs, to end their contract with the Olympian. Despite the enormous benefits of celebrity and influencer endorsements, marketers face equally great risks in partnering their brand or product with an individual since unpredictable scandals and controversy can damage a companys reputation and sales. On a February morning in 2018 Ms Jenner tweeted: "Sooo does anyone else not open Snapchat anymore? TheCelebritySource.com feels it's important to list some examples of how celebrity endorsements can have a negative impact on business. But when Cristiano Ronaldo removed a pair of Coke bottles from the podium of a press conference, he unwittingly cost the company more than $5 billion. "And then all of this earthquake and all this happened and I thought, is that karma? Lil Wayne learned the hard way that you have to be careful what you rap about.The rapper lost a multi-million dollar deal with Mountain Dew back in 2013 after he stirred up some controversy with a distasteful lyrical mention of civil rights martyr Emmett Till. Weil sued, but in 2008, they settled out of court. What are some other notable celebrity endorsements gone awry? The Bill states that any manufacturer or service provider, who puts up a false or . We remain supportive of Kirstie, wish her nothing but the best and we would welcome her back at any time as a returning client. 1. You may unsubscribe from these communications at any time. Pepsi pulled a 30-second commercial featuring rapper Ludacris after Fox News' Bill O'Reilly called for a company-wide boycott. 4 / 11. Unfortunately, just days after this announcement, the new Blackberry Creative Director sent out a tweet. Vick is now out of jail and back playing football for the Philadelphia Eagles. Slaps at the Oscars, antisemitic slurs, accusations of domestic violenceat a certain point, even the biggest brands and supporters have to position themselves by making a statement. But in 2014 James tweeted: "My phone just erased everything it had in it and rebooted. Its no secret that part of being a celebrity is getting endorsements for products and forming lasting partnerships with prominent companies. Who is the celebrity in advertising? After he made some controversial Tweets, football player Rashard Mendenhall, was fired from the endorsement deal he had with Champion Sportswear, which is owned by Hanesbrands, Inc. Moral of the story: always get everything in writing. MasterCard, KFC, and Charles Schwab were among the heavy hitters who benched Bonds. But awareness is fickle, sporadic, and generally fails to translate into profound structural changes. Simpson was, of course, not convicted. Near instantly Snapchat's stock price fell 8 per cent, wiping $1.95 billion from the company's total value. They countersued her, claiming breach of contract. Nevertheless, here and then, some have to taste the bittersweet aftertaste of their own actions. Her legal representative said the case was an "unjustified and public assault on Teri Hatcher's good name, reputation, and celebrity.". The statement dominated the media coverage so much that no one really remembers the rest of the collection. Sharapova is far from the first spokesman to be dropped by Nike. The family created the Kardashian Kard, a pre-paid debit card that would work as a bank account and could be used at an ATM. Simpson and Hertz Though, much like the fans that have been crowding outside the courts to show their support for him, not every brand has given up on the actor.The number one brand that definitely proved its devotion to the actor and stayed by his side through thick and thin: Dior. 1. Thats why its so important to choose the right companies and products for endorsements. Beyonc + Pepsi At first glance, Queen Bey's Pepsi endorsement is no big deal. Famous athletes like Michael Phelps, Michael Vick, and Tiger Woods caused hundreds of millions of dollars in damage to the businesses . Check out our list of six other athletes who lost their . In 2011 her lawyer wrote, "Ms. Polizzi recently filed claims for fraud and breach of contract against SRG. Companies such as Pepsi and Converse wanted nothing to do with him. Ms. News on all your favorite celebs, reality TV, and movies. Here are 12 celebrity endorsements that didn't go so well. The suit was settled, and Tarrant gave up the license. Let's take the example of Nike, an iconic brand famous for its consistent use of celebrities to endorse its wide range of products. While also being one of the biggest first world problems of all time, Lebron's tweet cost Samsung critical public image against its major competitor Apple. Unlikely. And when less-than-positive news about stars or athletes hits the press, companies that have contracts with them often re-examine the relationship. The backlash was real: Smiths high-powered talent agency, Creative Artists Agency (CAA), faced a dilemma of historic proportions when debating about whether to dump the controversial actor for whacking Rock across the face. Celebrity Endorsements Gone Wrong. While Gatorade, AT&T, Accenture, and Gillette didn't chase Woods out of his home with a golf club like his then-wife, Elin Nordegren, they did terminate their relationship with the golfer during that time. Celebrity endorsement is first and foremost a marketing tool used by companies to enhance their brand equity and increase their name recognition. Having a famous person huck your product isn't always win-win. Hiring a comic comes with its PR risks. Celebrities as testimonials can push a brand to new levels of popularity, boost sales, and create ever-lasting icons for advertisement campaigns. Kate Moss was axed from various fashion lines after the Daily Mirror printed photos of the British supermodel snorting cocaine in 2005. Estimations say that at its peak, one bottle of his fragrance Sauvagewas sold every 3 seconds. But that world is rapidly changing, and Under Armour's CEO is nimbly navigating it . According to E-Poll, when survey participants were asked to name the first thing that came to mind when they heard Priceline, 25 percent of participants said travel and 24 percent said Shatner or some variant (like Captain Kirk). In other cases, it took far less to screw up a lucrative partnership for celebrities. Mobile Resource Card, the company that put out the scammy card, then sued the sisters and their mom Kris for $75 million for breach of contract. Eva Longoria & L'Oreal. When the Connecticut attorney general voiced concern over the predatory fees in a pre-paid debit card called the Kardashian Kard, the Kardashian sisters decided to pull out and cancel their endorsement. Deschanel stated that this was an infringement on her publicity rights. Were guessing many stars are able to get over the embarrassment, but the wrong endorsements can also have a negative effect on a celebritys career. hbspt.cta._relativeUrls=true;hbspt.cta.load(442891, '5400bab7-c3aa-44f3-b898-4190bcaecddf', {"useNewLoader":"true","region":"na1"}); Of course, the examples mentioned were of the more extreme kind. He was sued for breach of contract to the tune of $25.2 million. The actress eventually dropped the lawsuit in the beginning of 2012, but was originally suing for $1.2 million. COMPLEX participates in various affiliate marketing programs, which means COMPLEX gets paid commissions on purchases made through our links to retailer sites. To make matters worse, Candie's, a brand owned by Madden, released a shoe called the "Zooey," which Deschanel claimed infringed on her publicity rights. ", The actress also received some support. Not surprisingly, Goldberg was not quiet about the conservative criticism that lead to her firing. After all, actors, musicians and models have to find a way to make a decent amount of money in between movie roles, albums and photoshoots. Converse made it very clear that they weren't willing to reward bad behavior after dropping Lattrel Sprewell back in 1997.The decision was made after news surfaced that Sprewell had choked his then-coach, P.J. Kellogg, one of his many, many, sponsors decided not to extend its contract with him. However, looking back to the end of October 2020, Depp was facing some of his multi-million dollar endorsement deals in jeopardy. After publicly making anti-semitic and other inappropriate statements, his supporting brands, like Balenciaga, The Gap, Adidas, his artist agency, and Vogue, had no other choice than to distance themselves from the musician in order to preserve their reputation. Celebrity endorsements gone bad. In 1997, old school British hair product Brylcreem had entered into a four-year $8.17 million sponsorship deal with Beckham, who at the time was boasting the world's best head of hair. The star went on to explain that he wasnt trying to imply that any complexion was better than another by partnering with the fairness cream company. Don't Kard me. The company, on the other hand, states that Perry's waning popularity in Europe caused sales to go down, which is why they didnt want to continue a business relationship with her. After all, Britney Spears, Christina Aguilera,. Here's some of the biggest clangers. In April 2013, Gomez's lawyer told TMZ that Gomez plans to countersue and that "any claim that Selena did not meet her promotional obligations is ridiculous.". Some people even questioned his sexuality due to his choice to promote the product. Here are a few: Tiger Woods and multiple brands Madonna and Pepsi Kobe Bryant and McDonald's and Coca-Cola Michael Vick and Nike Michael Phelps and Kellogg's Kate Moss and Chanel and H&M O.J. studio, network or celebrity. Simpson, LeBron James and Oscar Pistorius. Mexican singer and fashion designer Thalia, had a deal with Genomma Lab International, a skin care and pharmaceutical company. These major influencers, who have access to large audiences, received a lot of backlash for promoting failed celebrity endorsements. Now, Perry is fighting for the $2 million she says Jemella Group Ltd. promised her. Sign up for our newsletter to get the latest stories in hedge funds, PE, fintech, and banking delivered daily to your inbox. Below you'll find 10 examples of times when celebrities behaved badly and lost their endorsement deals as a result. Apparently, loyalty ultimately pays off. One celebrity's embarrassment can become our never-ending entertainment, especially when it still exists permanently on the internet. Ultimately, celebrities tend to direct . Jean-Claude Van Damme vs. Total Flex Home Gym. All in all, a self-directed crash. Another example of a celebrity endorsement gone wrong is the Tiger Woods campaign with Gatorade (and others). The Association of Professional Flight Attendants released a statement criticizing the actress and U.N. Things got even worse when Candies, a Steve Madden-owned brand, released a shoe called the Zooey. This is a particular danger when celebrities endorse multiple products at a time. The commercials also inspired the indignation of the International Paruresis Association, an advocacy group for people who suffer from shy bladders, a condition alluded to by Alternate Universe Rob Lowe, who claims to be unable to do his business with other people around. For more information, check out our, You're Fired: 10 Celebrities That Got Dumped By Brands. Only about five weeks ago, a last-minute event hosted by rapper Kanye West during Paris Fashion Week made big headlines after presenting a T-shirt with the writing White Lives Matter on it. First things first. In October, it was reported that Vick's agent said that Nike was again endorsing the quarterback, but Nike said it was just providing him with free apparel. Less than a month later, Pepsi pulled the spot. Subscribe to the Marketing Blog below. I just have a hard time believing a plane could take a skyscraper down demolition style.". After his indictment, Nike suspended its contract with him, without pay. The photo above shows Nicole Kidman promoting Etihad Airways. With increased importance placed on social media marketing, endorsements can also come from smaller scale stars like Instagram influencers. Looks like, in this case, the actor just got away with it. A few weeks later, he called it a scam on TV. Two years later, the former spokesman was arrested for the murder of Brown and Goldman. Sales, and create ever-lasting icons for advertisement campaigns that claimed that the star was `` fired for TOO... Later, the actor just got away with it, Britney spears, Christina,! Caused hundreds of millions of dollars in damage to the tune of $ 25.2.. Is no big deal gets paid commissions on purchases made through our links to retailer sites ' Bill called... Robyn 100 percent, he called it a scam on TV when News... 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