What's at stake for Brand Diddy? Sean 'Puffy' Combs faces dire 'higher you are, the harder you fall' warning as experts say his $1 BILLION business empire could crumble in wake of sex assault allegations

Hip hop mogul Sean 'Diddy' Combs's $1 billion business empire could be crumbling before his eyes as he faces a slew of sexual assault allegations and companies start distancing themselves from the mogul, industry experts say. 

Three women sued Combs for sexual assault, rape and abuse in November in the latest legal trouble for the mogul who rose to fame in the 1990s. 

Combs is worth an estimated $1 billion, with a record label, drinks company and TV station in his portfolio. But as the most recent allegations emerged, some of the companies have begun to step back.

Since the assault allegations surfaced, the artist also known as 'Puff Daddy,' has been dropped by a private school he helped to open, stepped back as chairman of his TV company, Revolt, and had his clothing brand 'phased out' by Macy's.

Business experts warned this could be just the tip of the iceberg for the mogul, saying the 'higher you are, the harder you fall' as his business interests do a 'risk assessment' to determine if it is worth being associated with him. 

Since the #MeToo movement, brands have been quicker to cut ties with accused public figures. Could Diddy be the next to fall?

$1billion business empire hanging in the balance  

President of the risk management company, Reputation Doctor, Mike Paul said Combs' business associates would be doing a 'risk assessment equation' to decide 'is he worth holding onto for the risk to our relationship with other providers?'

He added: 'The higher you are, the harder you fall. Harvey Weinstein was a very successful businessman, the most successful businessman in Hollywood and then the truth came out and now look at where he's at.'

He said: 'Those allegations are not something you want to be associated with - that makes people take four steps back. In this situation, the court of public opinion is much more important than the court of law. 

'Years ago, they might have waited to see how the legal side played out - that doesn't happen today. Those days are over and you can't get away with that anymore, as a private or public company. 

'The transparency and accountability of corporations of all kinds, small or large, private or public conglomerates is at a much greater level.'

Senior media lecturer at Northwestern University Jacqueline Babb said: 'Generally, consumers are intolerant of public figures behaving inappropriately. We have seen the actions of public figures reflect badly on the brands for which they are associated. 

'Generation Z has high expectations for how brands they support take a position on issues of importance to them and they are quick to switch brands and publicly lobby against brands that do not align with their values. 

'In some cases, brand switching can be temporary, providing short-term consequences. In other cases, brand switching can be so profound that it becomes the brand's demise.'

But Michael Layne, president of leading reputation management company Marx Layne, said Combs 'can recover'.

He said: ‘The battle will be fought on two fronts, in the media and then online.

‘I am sure he has conversations with the companies that he partners with and his other brands, he has pulled back from Revolt and he may need to temporarily step back from others.’ 

But he added that he could see a ‘way back’ for the mogul, he said: ‘Since the early 1990s, he has had a lot of controversy in his life - this isn’t the first controversy and yet he has managed to parlay quite tremendous financial worth and to partner with reputable companies.

‘This will damage his reputation, but he can recover.’

The allegations 

The hip hop mogul was sued by three women in November for rape, sexual assault and abuse - Combs has vehemently denied the allegations. 

His ex-girlfriend, the R&B singer Cassie - whose real name is Casandra Ventura and who was just 19 years old when they met - accused him of raping and beating her for more than a decade.

Ventura's suit named Bad Boy Records and other companies affiliated with Combs as complicit in the alleged abuse. 

She said in a statement: 'After years in silence and darkness, I am finally ready to tell my story, and to speak up on behalf of myself and for the benefit of other women who face violence and abuse in their relationships.'

Combs reached a settlement with Ventura just a day after the suit was filed in New York, though the terms have not been disclosed.

Despite his lawyer accusing Ventura of 'outrageous lies' and looking for a 'payday' with the suit, after settling, Combs said: 'We have decided to resolve this matter amicably. I wish Cassie and her family all the best.'

Ventura's lawsuit prompted another accuser, Joie Dickerson-Neal, to file a separate lawsuit, claiming Combs had drugged and sexually assaulted her in 1991 while she was a student at Syracuse University. 

She said Combs had drugged her until she couldn't stand or walk and then filmed himself assaulting her, before sharing the video with other people.  

The same day as Dickerson-Neal's suit, an anonymous woman, Jane Doe, also sued Combs alleging he and the R&B singer Aaron Hall had taken turns raping her and a friend at Hall's apartment in 1991. 

'While at Hall’s apartment, Jane Doe was offered more drinks and was coerced into having sex with Combs,' the lawsuit claims. 

She also claimed in her suit that Diddy later visited her after the alleged rape and choked her over fears that her friend might tell his then-girlfriend about the sexual assault. 

In a statement to DailyMail.com shared by his spokesperson, Combs vehemently denied the allegations listed in the lawsuit while describing it as a 'money grab.' 

The lawsuits were brought under the Adult Survivors Act - a New York law giving victims of sexual abuse a one-year window to file civil action regardless of the statute of limitations, which expired last week. 

The most recent allegations against Combs follow a long history of legal disputes and claims of violence. 

In 1999, Combs was arrested on felony charges in New York and accused of beating rival record executive Steve Stoute. Combs later apologized, paid Stoute $500,000, pled guilty to harassment and was sentenced to one day in anger management.

That same year, he was charged with gun possession and bribery related to a nightclub shootout in New York City that wound up getting his then-girlfriend Jennifer Lopez hauled to the police station. He was found not guilty.

Then, in 2004, Kimora Lee Simmons - ex-wife of hip-hop mogul Russell Simmons - said in a New York magazine profile that Combs threatened to hit her.

Combs, at the time, did not return a call for comment.

He has also been accused of saying he wanted to blow up Kid Cudi's car and in 2015, he was charged with assault with a deadly weapon, battery and making terrorist threats in 2015 after an incident with a UCLA coach. 

Those felony charges were dropped by L.A. County.

Businesses that pull in $90million a year

With an estimated net worth of $1 billion - Combs is thought to be the wealthiest current hip-hop performer, joint with rapper Jay-Z. 

Through his umbrella company, Combs Global, the mogul has a 'diverse portfolio of business and investments covering the music, fashion, fragrance, beverage, marketing, film, television, and media industries', according to his site.

His partnerships are thought to pull in over $90 million a year, according to Forbes - but as allegations about his conduct emerge, some of his business partners are backing off. 

On his profile on the Combs Global site, Combs describes himself as 'one of the most successful entrepreneurs and cultural icons of all time.'

There are quotes from the mogul dotted over the web page, one reads: 'We want to have a cultural impact - we want to be an inspiration to show people what can be done.'

DailyMail.com contacted Sean Combs, the Capital Preparatory Charter Schools, Revolt, and his business partner Macy's for comment, but they did not respond in time for this report. 

Combs Global and it's former business partner Diageo declined to comment. 

Bad Boy Entertainment

Combs founded the record label Bad Boy in 1992, propelling himself to become one of the leading figures in hip-hop, working with the Notorious B.I.G. and Mary J. Blige.

It was his first big business and has since 'sold over 500 million records, produced 38 platinum singles, earned multiple Grammy Awards' according to his site. 

He also recently announced the launch of Love Records, an all-R&B record label.

The label was named as complicit in Cassie's suit against Combs, she said Combs 'frequently beat' her in front of staff and employees of Bad Boy Entertainment and his other businesses, but no one spoke up. 

Bad Boy released Cassie’s 2006 album that debuted at No. 4 on the Billboard 200 albums chart. 

It is unclear if he has stepped back from his role at the company.  

Combs Drinks 

Combs set up his drinks company, Combs Spirits, in the early 2000s. The company began working with beverage giant Diageo in 2007, taking over the marketing and promotion of Cîroc for a share of the profits. 

Then in 2013, the two companies co-purchased DeLeon tequila. 

He is reported to have made $60million a year from the drinks brands and by 2014 more than two million cases of Ciroc were sold a year.  

But in June this year, before Cassie's allegations, the spirits' parent company, Diageo, started the process to cut ties with the mogul, accusing him of using threats and acting in bad faith to get his own way. 

It followed a lawsuit lodged by Combs in May, that claimed his vodka and tequila brands didn't receive promised investments and were treated as inferior 'urban' products.

Combs said Diageo leadership told him his race was one of the reasons it limited distribution to urban neighborhoods.

In a letter filed with a New York court just before Combs settled with Cassie - Diageo cited the rape allegations as another reason Combs should not serve as the face of DeLeón tequila going forwards.

DailyMail.com contacted Diageo for comment, and officials did not respond in time for this report. 

It is unclear if he has stepped back from his role at the drinks company.  

Charter school

Combs helped launch the Capital Preparatory Charter School’s Harlem location in 2016 and donated $1 million in 2021 for its Bronx location. 

But the school decided to sever ties with him shortly after the allegations surfaced. 

Dr. Steve Perry, the founder of Capital Preparatory Schools, released a statement on Tuesday saying: 'Following a comprehensive evaluation, a decision has been made to end the partnership between Capital Preparatory Schools and Sean Combs.

'While this decision was not made lightly, we firmly believe it is in the best interest of our organization’s health and future.'

The school is a publicly funded independent school for children in grades 6-12 with a 'social justice lens'. 

On its site, the school says: 'Every year since 2006, 100% of our graduates have been accepted into 4-year colleges and universities. This is our North Star.'

Combs visited the school in October of last year and told CBS it was a 'dream come true' to have an 'impact'.

Revolt 

In 2013, Combs founded his digital cable network, Revolt. But this week, the company announced he was 'temporarily' stepping down as chairman.

It is not clear when he will be returning, but Combs still has a major equity stake in the company.

Revolt said in a statement: 'While Mr. Combs has previously had no operational or day-to-day role in the business, this decision helps to ensure that Revolt remains steadfastly focused on our mission to create meaningful content for the culture and amplify the voices of all Black people throughout this country and the African diaspora.'

It added: 'Our focus has always been one that reflects our commitment to the collective journey of REVOLT - one that is not driven by any individual, but by the shared efforts and values of our entire team on behalf of advancing, elevating and championing our culture - and that continues.'

Revolt is primarily a music video channel but also commissions shows about social justice and racial issues.

After he stepped down, rapper 50 Cent posted on Instagram: 'I’ll buy that from you play boy, for the low because you know Cadillac and AT&T gonna pull out.

'I’ll give you a few dollars for it now! Sell it to me, then we can be friends. I’m serious call my phone.'

It came after a presenter of a podcast on Revolt said she wouldn't take part in a third season because of the allegations.

Dawn Montgomery, who presents Monuments to Me, wrote on X: 'I am a [sexual assault] survivor & I cannot be part of a show that’s supposed to uplift black women while @Diddy leads the company.

'I still would like to hear from Revolt’s leadership as there are men in those positions who could’ve provided a safe space for [sexual assault] survivors like myself.'

Sean John

Combs started his clothing brand, Sean John, in 1998 and partnered with Macy's in 2010 - he sold part of the brand in 2016 but then bought it back in 2022 for $7.5 million after the brand filed for bankruptcy.

The brand was making $450 million in sales in 2016.

Last week, Macy's announced the end of their partnership with Combs saying they were going to 'phase-out' the collection.

A source told RadarOnline.com that they had been evaluating the brand for a while now and the decision pre-dated the allegations, noting it hasn't been selling like it used to in the late '90s and early '00s.

They said: 'As part of our ongoing review of our brand portfolio, the Sean John collection has started to phase out of assortment since early fall 2023.

They added that his products were 'being removed' and 'won't be available on the site'.

It is unclear if he has stepped back from his role at Sean John.

Weinstein et al 

Since the #MeToo movement, more women have come forward and tell their stories sexual assault and brands have been quicker to take action and cut ties with accused executives.

A series of high-profile men across industries have faced allegations of sexual misconduct and been cut off. 

The movement started in October 2017 when dozens of women accused movie producer Harvey Weinstein of rape, sexual harassment, and abuse that lasted for more than 30 years. 

Weinstein was fired by the movie studio he founded, later charged, tried and in 2020 sentenced to 23 years in prison in New York. The Weinstein Company filed for bankruptcy.

In 2018, shares of clothing company Guess Inc. fell 18 percent after model and actress Kate Upton accused the company’s co-founder Paul Marciano of using his power in the industry to harass women.

Upton tweeted: 'It’s disappointing that such an iconic women’s brand @Guess is still empowering Paul Marciano as their creative director #metoo.'

Guess share price recovered but in September, Guess directors agreed to a  $30 million settlement to resolve claims they turned a blind eye to Marciano’s harassment of the company’s models.

Marciano was forced to step down as executive chairman in 2018 but remains creative director and returned to the company’s board of directors last year.

Also in 2018, Wynn Resorts stock plunged more than 10 percent after The Wall Street Journal reported allegations that billionaire CEO Steve Wynn engaged in sexual misconduct over many years.

Wynn resigned in February 2018 and is now retired, in September this year Wynn Resorts settled the lawsuit with nine women. 

In September of this year, British comedian Russell Brand was accused of rape, sexual assault and emotional abuse by four women during the peak of his fame from 2006. 

Since the original allegations, more women have spoken out. YouTube suspended monetization of his account and videos he put up on the platform which had been bringing in an estimated $1.3million a year. 

The BBC removed shows featuring Brand, his gigs were cancelled and he was dropped by his publisher.