A major question now circulating throughout Greater Boston concerns whether the casino being constructed here will bear Steve Wynn’s name when it launches in 2019, given that the CEO’s allegations have rapidly transformed his brand from sterling to potentially compromised.
Marketing and branding experts—fields that command significant attention and resources in contemporary business—are monitoring the Wynn case closely.
At Northeastern University, Assistant Professor Charn McAllister teaches in the Management and Organizational Development Department and notes that this situation presents unprecedented branding challenges.
The core difficulty stems from how intimately the corporation is connected to the individual facing serious allegations. Because the brand itself carries his name, it has become inextricably linked to the negative publicity surrounding him.
“I think Steve Wynn in many ways is the heart and soul of Wynn Resorts,” McAllister said. “It’s a cult of personality. When people invest in Wynn, they are investing in Steve Wynn…Five or six months ago, you would expect a company to remove an individual from a position of leadership. How do you do that when the company is the person? Though these are still allegations, it’s like Weinstein in that the allegations were so horrible that the name of the business became poison. When your name is on the building and on everything else, at that point it puts the Board in a very difficult situation.”
This predicament is compounded by the Board’s disclosure in federal filings that Wynn’s departure would trigger substantial financial consequences for the publicly traded company. They must now weigh the financial impact of losing Wynn against the damage inflicted by negative brand association.
“They have already stated in SEC (Securities and Exchange Commission) filings that the loss of Steve Wynn would result in major losses to the company, but at the same time you just had a 14 percent drop in your stock price because of Steve Wynn,” he said.
Since establishing operations in Everett, Wynn has maintained strict control over its branding. From local headquarters to Las Vegas operations, the company has been meticulous about consistency in all messaging and visual presentation. This reflects decades of effort spent cultivating the Wynn name as synonymous with luxury, enjoyment, and refinement.
The current allegations against Wynn, which he categorically denies, represent the opposite of that carefully constructed image. Regardless of their ultimate validity or how they emerged, McAllister emphasized that public perception today judges brands harshly.
McAllister indicated he will be observing whether the company encounters recruitment difficulties as it prepares for the 2019 opening, given how public perception of the brand may influence potential employees.
“The brand integrity is going to be downgraded substantially,” he said. “Recruiting for the company will be harder likely because the new potential candidates may not be so eager to work for the company. It’s not that they are afraid so much of getting assaulted, but the image of the company. Do you want to go home and tell your parents or friends that you work for this brand that is now associated with such bad things?”
McAllister is also tracking how international markets might interpret these allegations, particularly given Wynn’s Asian operations.
Additionally, he suggested that corporations may reconsider naming their brands after company leaders or founders. He pointed to Amazon as an example—while Jeff Bezos is widely recognized as its leader, the company does not bear his name.
According to McAllister, the truly unprecedented question is whether public perception will compel an actual brand change. This is the same question preoccupying much of Everett.