As of the afternoon of July 20, as the last endorsement partner L’Oreal announced the termination of the contract with Kris Wu Yifan, all of Kris Wu Yifan’s fifteen endorsements have been terminated or their cooperation has been suspended.
The endorsement brands are organized as follows.
KANS, Bestore, Yunting APP, Liby, Vantage Company, Master Kong Ice Tea, Tencent Video, Tuborg Beer, Porsche, Louis Vuitton, Bulgari, Lancome, L’Oreal Men.
With the termination of these brands one after another, Kris Wu Yifan may face huge claims.
An insider said that the compensation for liquidated damages generally does not exceed the total amount of the contract.
If based on Kris Wu Yifan’s worth, 15 million endorsement fees for each endorsement, Kris Wu Yifan would have to compensate hundreds of millions of dollars for more than a dozen brands.
However, given that some of his endorsements are about to expire, it is not very realistic to demand huge compensation. The two parties will most likely negotiate or settle the litigation, and even if a lawsuit is filed for compensation, Wu may face difficulties in enforcement because of his Canadian nationality.
And if the assets are in foreign countries, the Chinese court’s judgments still need to be arbitrated and apply for enforcement abroad. It also depends on the relevant treaties between the countries, which may be more difficult.