(LONDON) — The magic and drama of beauty pageants have long captivated global audiences. However, one of the most prominent pageants in the world, Miss Universe, historically a springboard to opportunities for women, is now in turmoil amid the organization’s legal troubles and brand backlash.

Victoria Kjær Theilvig, a 21-year-old animal rights activist and aspiring lawyer who competed as Miss Denmark, earned the crown at the 73rd Miss Universe pageant on Nov. 16.

“She has been on everybody’s favorite list. She’s unique,” pageant coach and blogger Rafa Delfin, who attended the event in Mexico City, told “Impact x Nightline.” “Miss Universe has not had a blond queen since 2004.”

For the first time in more than a decade, Miss USA did not place among the semi-finalists at the pageant. Representing the country was West Point graduate and current Stanford graduate student Alma Cooper, the first active-duty soldier to ever win Miss USA.

In the latest episode of ABC News’ “Impact x Nightline” — titled “Cracks in the Crown: Miss Universe in Crisis?” — which premiered on Thursday, Nov. 21, pageant insiders pull back the curtain on allegations of disarray within the Miss Universe Organization (MUO).

These range from restrictive contracts that contestants have to sign to compete, to the co-owners’ legal troubles and the declining quality of the pageant production itself.

“There’s a reckoning happening in pageantry,” Hilary Levey Friedman, the author of “Here She Is: The Complicated Reign of the Beauty Pageant in America,” told “Impact x Nightline.” “It really truly may be the end of Miss USA or Miss Universe.”

Rafa Delfin, a dedicated fan who covers various pageants for his blog “Critical Beauty,” complained in a video posted on social media that the pageant’s preliminaries, which took place on Nov. 14, were “a total disaster.”

He noted the brief on-screen time that the record number of candidates — 41 more than the 84 seen in 2023 — were given in this year’s evening gown round.

“This is a business, OK? The more countries you invite, obviously, the more money you make,” Delfin said, noting the result was quantity over quality.

Questions also surfaced about the ethics of the current leadership. Just weeks before the competition, the Miss Universe co-owner, Thai media mogul Anne Jakrajutatip, and former Miss Venezuela Organization President Osmel Sousa went live on a since-deleted TikTok revealing their personal favorites.

The duo also mocked Miss Lebanon, Nada Koussa, in a separate video that surfaced on Instagram. In response, Koussa withdrew from the pageant.

The Lebanese Ministry of Tourism demanded an apology from MUO. Once that was issued, Koussa returned to the pageant and the video was taken down.

“It’s a fragile ecosystem and it’s a very trust-based ecosystem,” said Annemarie Pisano, former Miss Universe Organization press manager. “If you do lose that trust, that’s definitely going to be a problem for a lot of women.”

Under the leadership of Jakrajutatip and Mexican businessman Raul Rocha Cantu, who acquired 50% stake in Miss Universe Organization in January, the pageant company made changes like removing age limits and allowing mothers and women who are married, divorced or pregnant to compete.

However, Jakrajutatip, the first transgender woman to own the organization and a self-proclaimed trans rights activist, seemed to contradict the brand’s public statement in an October 2023 business meeting involving the organization’s leaders that surfaced online a few months ago.

“The trans women, the women with husbands, divorced women …” she said during the meeting. “They can compete but they cannot win. But we just put the policy out there, so you have that social inclusion.”

Jakrajutatip responded to the video in a social media post.

“The malicious edited video was out of context and used to manipulate other people which led to the public confusion, misunderstanding, misinterpretation and wrong conclusion,” she wrote.

Omar Castorino Montanaro, a Paraguayan business tycoon and TV host who was involved in the organization, highlighted the competition’s fading relevance.

“Women, young women, are losing interest in the brand and being or trying to be part of that dream of becoming a Miss Universe,” he told “Impact x Nightline.”

The Miss USA Organization, a franchise under parent company MUO, has faced its own struggles since Laylah Rose took over Miss USA management in 2023. After Miss USA Noelia Voigt and Miss Teen USA UmaSofia Srivastava gave up their crowns in May 2024, state directors representing nine states and Washington, D.C., have since stepped away from the organization.

In interviews, some directors cited “abusive management” and the “unprofessionalism” of the new leadership as reasons for leaving.

ABC News has exclusively learned that the current Miss USA, Alma Cooper, has retained an attorney in connection with her role as Miss USA. The organization declined to comment. ABC News reached out to Rose for an interview and comment, but did not receive a response.

“The people that have the ability to produce these pageants and direct these girls, we need to hold them more accountable,” Claudia Englehardt, the former Social Media Director of Miss USA Organization, told “Impact x Nightline.” “It’s never the girl that is the problem. More often than not, it’s the people that are managing these young women in these positions.”

The Miss Universe Organization’s leadership has faced allegations as well. Rodrigo Goytortua, former CEO of Miss Universe Mexico, filed a lawsuit against MUO co-owner Raul Rocha Cantu, alleging that Rocha Cantu did not pay him for seven months of his work. ABC News reached out to Rocha Cantu for an interview and comment, but did not receive a response.

Paula Shugart, former president of the Miss Universe Organization who resigned in 2023, has also given power of attorney for a lawyer in Thailand to file a criminal claim on her behalf against Jakrajutatip for defamation. Jakrajutatip denied any wrongdoing.

Omar Castorino Montanaro, who said that MUO promised him a hosting role for Miss Universe 2025 in Paraguay, alleged that the organization stopped responding to him after he made a $500,000 deposit and spent months in preparation. The host country of the next Miss Universe pageant has yet to be announced.

ABC News also reached out to The Miss Universe Organization and Jakrajutatip for an interview and comment, but did not receive a response.

After ABC News’ “Impact x Nightline” episode “Cracks in the Crown: Miss Universe in Crisis?” premiered, the Miss Universe Organization issued a press release statement on its website.

“We ardently refute these allegations that underscore our dedication to maintaining a supportive, ethical environment for all participants. Our authenticity and dedication to promoting cultural interactions, social activism, and personal development go beyond conjecture, grounded in decades of positive impact around the globe, ” it said in part.

“Miss Universe remains unwavering in its mission to foster unity, celebrate diversity, and champion women’s empowerment.”

Now, some wonder what the future holds for MUO.

“Women today are not as willing to sit back and say, ‘I’m going to let someone in a position of power abuse their position,’” author Hillary Levey Friedman told “Impact x Nightline.”

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