Bollywood hearthrob Salman Khan’s brand value could be severely impacted with a Jodhpur court sentencing him to five years in jail in the 1998 blackbuck poaching case. According to trade analysts, ₹400-600 crore could be riding on the actor.
Several brands associated with the actor saw their share price fall after the verdict was announced early on Thursday. Salman endorses close to 10 brands including Relaxo footwear, Being Human, Emami, Dixcy Scott innerwear, Appy Fizz and Astral Pipes, among others.
Salman was facing charges under Section 51 of the Wildlife (Protection) Act, which prescribes six-year jail for the guilty. Industry watchers noted that Khan’s Eid release Race 3 may be marred due to the verdict. His other projects include Bharat and Loveratri , later this year.
Varun Gupta, MD and India Leader, Valution Advisory at Duff & Phelps said, “Typically, a celebrity brand does get impacted when the subject celebrity gets involved in any controversy. However, since knowledge of the blackbuck case is public for around two decades, the impact on Salman or the brands endorsed by him may not be that severe. Having said that, Brand Salman is likely to experience a negative impact in the short term especially if the conviction does not get a stay in the High Court.”
Gupta said that based on Duff & Phelps’ latest celebrity brand valuation report, which was published in December 2017, Brand Salman is valued at $39 million.
In support
Sandeep Goyal,Chairman, Mogae Media, however, said, “Salman Khan is already 52. His mass appeal is waning and key brands have been writing him off. Hence, the impact may not be severe in this case.”.
Earlier this year, Forbes in its report pointed that Salman Khan’s brand value has been coming down as brands were prefering younger stars to woo the millennials.
Forbes said that the 52-year old actor’s earnings have dipped from a high of ₹270.33 crore in 2016 to ₹232.83 crore in 2017.
Brand experts said that the actor’s endorsement fee for a day is put at ₹ 4-5 crore.
Meanwhile, Bollywood rallied in Khan’s support. Director-producer Subhash Ghai said, “I am extremely shocked to hear @BeingSalmanKhan being convicted by session court but also having full trust in Indian Judiciary which has many other doors to appeal for final justice whatsoever. Since he is the most loved person in the industry and public for his human reasons too.”
Former actor and Parlimentarian Jaya Bhachchan reacted on Twitter, “Feel bad. He should be given relief. He has done a lot of humanitarian work.”
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