NewJeans looking to sign direct deal with luxury brand?

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According to media reports, after announcing the termination of the contract, NewJeans sought to directly sign an ambassador contract with a luxury brand without going through ADOR Company.

According to a recent report by Ten Asia, the NewJeans group recently expressed its intention to sign a direct two-way contract with the global luxury watch brand O, through a manager of ADOR Company, identified as A. (O is predicted to be Omega - the brand that just announced that Danielle will be its new ambassador).

Manager A is said to have contacted the brand and started discussing a contract directly with NewJeans. Additionally, it was also revealed that NewJeans had contacted another luxury brand through another former ADOR manager, identified as B.

At the press conference announcing the termination of the contract with ADOR (from November 29), NewJeans stated that they will minimize the damage to advertisers by continuing to comply with existing agreements. Their intention is to ensure that the advertisements signed before they announced the termination of the contract will proceed without any problems.

However, NewJeans' attempt to seek a new contract through ADOR employees has been controversial. Industry insiders say that NewJeans' pursuit of a new contract through employees still on ADOR's payroll, while claiming to have terminated its contract with ADOR, is contradictory.

Danielle duoc cong bo tro lai dai su toan cau Omega moi day. Anh: X
Danielle was announced as the new global ambassador of Omega from December 17. Photo: X

Upon discovering NewJeans' behavior, ADOR immediately took control and suspended manager A. In addition, the company informed O and another luxury brand that signing a two-way contract with NewJeans would violate their exclusive contract.

According to Ten Asia, this situation has further destabilized the advertising industry, as brands fear potential lawsuits from ADOR, if they follow NewJeans' unilateral actions.

The current standard exclusive contract of the Korean Ministry of Culture, Sports and Tourism requires all entertainment activities of the artist to be carried out through the agency.

During the contract period, the artist cannot negotiate the deal on his own without the approval of the agency.

If a third party actively participates in an artist's breach of contract, they may also face liability.

“I don’t understand why they are rushing into advertising deals or setting up individual accounts, when they can wait calmly, given the ongoing litigation,” an industry insider pointed out.

Advertising is the most sensitive issue in the industry and they seem to be acting too hastily."

Previously, 5 members of NewJeans (Minji, Hanni, Danielle, Haerin, Hyein) created a new Instagram account called jeanzforfree, to interact with fans, replacing the private platform Phoning that they used to use (owned by ADOR and HYBE).

But ADOR responded that the 5 female idols had created new accounts without consulting the company. ADOR requested that NewJeans resume operations on the app and its existing accounts.

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