After controversial comments, are businesses turning their backs on Trump?
On Monday, NBC announced that it would break its contract and no longer air the annual Miss USA and Miss Universe pageants.
U.S. Republican presidential candidate Donald Trump stands in front of a statue of actor John Wayne during a campaign event at the museum and birthplace of the actor while campaigning for the 2016 Republican presidential nomination in Winterset, Iowa on June 27, 2015. NBC Universal is ending its business relationship with real estate mogul Donald Trump "due to the recent derogatory statements," CNBC said in a tweet on June 29, 2015.
Brian Frank/Reuters/File
Is Donald Trump's run for the presidency bad for business?
After the real estate mogul and GOP presidential hopeful made offensive remarks about Mexican immigrants, several former media partners opted to drop business relations with Mr. Trump, raising speculations that more clients and collaborators could follow suit.
On Monday, NBC announced that it would no longer air the annual Miss USA and Miss Universe pageants, which are co-owned by Trump. It was the second channel to cancel the pageant programming after Univision, the largest Spanish-language broadcasting company in the United States, announced its decision last week.
Mexican media giant Televisa also announced that it will no longer be doing business with Trump following the tycoon's remarks that Mexican immigrants brings drugs and crime, and are rapists.
Some experts say these losses are an inconsequential to Trump's bottom line, and his other businesses outside of media are unlikely to be impacted.
"This is a blip on the radar," said Stefani Markowitz, president of the New York-based brokerage Rutenberg. "And there is little question that his real estate holdings not only won't be affected, but will continue to rise."
Trump has a financial stake in television, real estate, and hotels, and his flamboyant personality and starring role in the television show “The Apprentice” have made him a brand familiar to most Americans.
"I think that people have come to expect this kind of behavior from Trump," said Robert Passikoff, president of Brand Keys Inc., which monitors brand equity. "You don't have to agree with him, but he is one of the few human brands wandering around anymore."
But other celebrities with distinct personal brands have taken a fall for racist comments before. In 2013, celebrity chef Paula Deen faced backlash after admitting to using a racists slur in a court deposition, the Monitor reported at the time.
And last year, the Sultan of Brunei lost business when celebrities and entertainment industry leaders opted to boycott his Beverly Hills Hotel and other properties due to his country’s adoption of Islamic shariah law.
Experts also say that Trump's pockets are too deep to be affected by the backlash. He has claimed that his net worth totals $8.7 billion, but Forbes magazine's analysis of billionaires pegged it as closer to $4.1 billion.