Sean Combs Trial and what happens to a business empire when public allegations surface against its founder?

As a professor of media strategy at USC Annenberg and entertainment law at USC Gould School of Law, focusing on law, music, arts, and media; I’ve been contacted by several media outlets to weigh in on the business impact of the legal challenges surrounding Mr. Sean “Diddy” Combs.

First and foremost, the allegations are deeply disturbing. Our thoughts, support, and compassion are with the individuals who have come forward. The pain they endured at the time of these events, and continue to relive during the legal process, is immeasurable.

From a business standpoint, the road ahead is complex. Mr. Combs' ventures span music, fashion, spirits, and media. Some of these brands will likely suffer long-term damage, particularly those tied to mainstream consumers and family-oriented audiences. Others, especially those aligned with counter-culture identities, may paradoxically gain appeal, however troubling that may be to many of us.

For example, the “Bad Boy” brand may now take on an even more rebellious identity among younger audiences drawn to disruption. Meanwhile, parents and institutions are likely to step away from purchasing affiliated products or aligning with the image.

His music catalog remains a cornerstone. Producer and artist royalties from decades of hits will continue to generate income. While Mr. Combs transferred artist rights back to many original Black artists in 2023, a gesture of empowerment to those artists. He still holds residual rights as a producer and collaborator on countless songs played daily around the world.

Endorsements are another story. In today’s climate, brands avoid controversy at all costs. Collaborations with figures in the center of public scrutiny come with reputational risk, especially for global or consumer-facing companies. That said, we may see some niche or counter-culture brands lean in.

This moment reflects something bigger than one man or one business. It challenges us to think about accountability, brand equity, consumer behavior, and the uncomfortable space where art, power, and harm intersect.

What has happened is truly awful and while the questions have been asked about the business impacts, we guide people to be more concerned with the impact this has all had on the victims.