The Financial Fallout from Young, Troubled Celebs

Early last Saturday morning, after a night of partying, Lindsay Lohan and her Mercedes got into a tangle with some bushes in Beverly Hills and the actress was subsequently arrested on suspicion of drunk driving (police also said a substance believed to be cocaine was found). She entered rehab on Memorial Day and now the LA Times is using the latest incident involving the 20-year-old starlet as a peg for two articles about the business affairs of young, troubled Hollywood.

First, David Pierson and Andrew Blankstein take a look at how the California Alcohol Beverage Control is trying to crack down on one of the worst kept secrets in Hollywood: underage stars partying at exclusive clubs. Celebs mean publicity and big business for LA clubs and many will bend over backward to accomodate stars, even if they are underaged. And now, because there's plenty of paparazzi, there's usually no hiding for teen stars out on the town. Currently, the ABC is seeking a 15-day closure for a Hollywood club Mood, which was recently the subject of an undercover investigation. But with only four agents to monitor a 2870 liquor licenses, "we can't be in those places every night," says John Carr, a spokesman for the agency.

Another article by Rachel Abramowitz and Sheigh Crabtree asks if Lohan's arrest/another stint in rehab will effect her burgeoning modeling and movie career. Fashion wise, they aren't predicting any Kate Moss style blowback because of her putative substance abuse. It seems that everyone who is in business with Lohan knew her reputation as a party girl and were still "willing to gamble on her effervescent beauty."

Movies, however, may be a different story. "When your personal life is bigger than what's on screen, you've blown it as an actor," says one producer who knows Lohan. Furthermore, lax work habits are much more problematic during a movie shoot, which last several months, compared to a fashion shoot, which takes several hours. And it wasn't so long ago that Lohan was publicly scolded by the head of Morgan Creek James Robinson for showing up late and missing days on Georgia Rules.

Meanwhile, Variety is reporting that it's now unknown if Lohan will be able to participate in her upcoming project Poor Things with Shirley MacLaine and Olympia Dukakis, which was supposed to begin shooting today (however, the LAT says that the production has extended shooting to accomodate Lohan's expected stay in rehab). And in the future, you have to imagine that it's going to get pretty tough for her to get bonded.

But a Lohan backlash with consumers may have already started months ago, according to Steve Levitt, president of Marketing Evaluations/The Q Scores, which evaluates celebrities for advertisers and licensers. In a February 2007 study, Lohan's negative ratings were "four times" her positive ratings, although "her recognition is up a lot."