Saturday 29 June 2013

Paula Deen's Multimillion-Dollar Disaster: What's the Cost of the N-Word?

The celebrity chef's use of a racial slur is taking a big bite out of her fortune

What is the fee for using the N-word these days? Ask Paula Deen - if you can get to get my foot in the mouth long enough, she'll tell you it's a lot.

Embattled celebrity chef Deen has seen his empire crumble many facets as a pie poorly constructed (not enough butter?) This week, as one of the business partners after other cuts ties with her after his admission that he had used the N-word.

Read also: Paula Deen and QVC "pause" to each other while this Whole N-Word thing gets resolved

But just how much of a bite is taken out of the scandal blossoming Din elaborate buffet of endorsements, product lines, personal appearance fees and other efforts to make money?

According to Forbes, Deen raised $ 17 million in 2012. But judging by the steady stream of defectors from the field Deen, the 2013 account will not be as strong.

View video: Paula Deen: 5 Golden Moments, butter drenched

The Food Network, which broke with Deen last week, after she weakly tried to save face with numerous videos posted online apology, brought in an estimated $ 2.5 million for Deen year - a rate that will not be collected after his current contract expires in June.

Although this is the largest single loss to the coffers of Deen - until now - is almost unique. Smithfield Foods, which carries a line of brand hams Paula Deen, Deen cut loose this week. Deen's agreement with Smithfield worth about $ 900,000 in 2010, and is probably not going anywhere, but in the following years, as Deen empire spread like butter on a stack of cookies clogs arteries.

View Video: Jimmy Kimmel, Conan O'Brien Mock Paula Deen Over N-Word Controversy

Then there's the Deen association with the drug manufacturer Novo Nordisk, which makes the diabetes drug Victoza, which Deen promotes. Novo Nordisk has not officially disbanded Deen - rather, by mutual agreement with Deen "suspend our activities in patient education, for now." However, the association with the company Deen - who was beaten in the middle of no little controversy last year - is reportedly a three-year contract worth $ 6 million. Thus, in the event that things go south for Deen on that front as well, take another piece $ 2,000,000 Deen cake.

That's $ 5.5 million - almost a third of the $ 17 million Deen reportedly took in the last year.

Read also: Paula Deen: "I beg your pardon 'to use N-Word

And that's not counting the impact that Walmart and Target decisions to separate from Deen will. While these figures are more difficult to quantify, the loss of a retail giant as a place through which to flog their wares surely have a financial impact on Deen.

Be generous and having Deen in his word during the interview to "Today" on Wednesday that only uses the N-word once (a claim denied by previous count Deen), that's a great contribution to the swear jar.

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