Pray4Demi asked E! if Disney stars are allowed to get in trouble? According to Ken Basin, who has worked with Disney, said that they could sue or fire Demi if they seek some sort of financial redress from her. Somewhere, deep in her contract, there’s probably some group of words that the company could use to bring her down. One is a morals clause.
Often, especially with companies like Disney, they’re so broadly worded that they can be triggered by any event that brings Disney into ‘disrepute’ or ‘scandal.’ The other clause deals with disability. The wording generally states that if an artist is disabled in any way, for any reason, a company can terminate a contract and even seek compensation for losses.
‘Disney tends to be a very T’s-crossed and I’s dotted company when it comes to contracts. I would expect they would have very tight contracts and very broad morals language. It would be an extremely bad PR stance to take [against Demi]. Sometimes the right step is no step at all.’
A Disney star could announce a drug problem and Disney might still not do any thing, Basin suggests: ‘Disney tends to work with unestablished talent and then builds them as brands. These stars take so much time and investment, it often makes better business sense to wait it out.’