Doctrinal Definition
The hidden, off-balance-sheet liability a brand accrues with every inauthentic marketing action or broken promise.
Strategic Deconstruction
Reputation Debt™ is the inevitable consequence of participating in the failed Attention Economy—the practice of chasing attention without a foundation of trust. Every piece of clickbait, every tone-deaf campaign, every broken brand promise is a withdrawal from the brand's trust account. This debt does not disappear; it accumulates. It is eventually paid down through costly corrective campaigns or suffered as a perpetual "Trust Tax" of higher customer acquisition costs, lower pricing power, and increased market cynicism.
Real-World Analogue (The Evidentiary Mandate)
The Fyre Festival is the ultimate case study in the catastrophic calling-in of Reputation Debt™. The marketing was a viral masterpiece, generating immense global attention for a luxurious, exclusive music festival. The reality was a logistical disaster built on a foundation of lies. The debt was called in with devastating force. The fallout included investor fraud lawsuits exceeding $26 million, Chapter 7 bankruptcy, and a multi-year prison sentence for its founder. Fyre Festival represents the acute, total asset liquidation that occurs when a brand is built entirely on the hollow asset of attention with a foundation of zero trust.