How could you destroy the value of a domain?

[Auction]

We would like to offer a premium domain to a developer who would build it out and then share in the revenue.

What are some things the developer could do to permanently or semi-permanently destroy the value of the domain itself?

Try to be specific (eg. banned from google) please elaborate.

[chipmeade]

Get sued for libel or something else and have the domain taken.
Post something that gets picked up by the press in a negative way
Associate it with something nefarious/undesirable. Porn, hate speech, Illegal activity
Spam/Scam/Cheat using the domains and get it placed on block lists

[fulltiltpoker]

You can always request a reconsideration from google, after being used for bad stuff you can start filling nice content and fill a report that everything is cleaned up.
Except backlinks, you can't delete those so you will have to wait long time before they are being dropped from the index. Watchout for too many links (2000-5000+ per month for example) and warn your developer to reduce them to a reasonable number.

[DaddyHalbucks]

They could compete with you, siphon off traffic, put ads on there and cut you out of the revenue, etc..

[Ilze]

Totally screw up your SEO...I hired someone to do seo, and they made it worse~~~~

[south]

Spam any comment section, link to it from porn sites, install malicious software, leave it wide open for hackers to install trojans, setup an open smtp relay, repeatedly fraudulently click on ads, especially adsense.

Countless ways.

[Dirty SEO]

Mostly watch for bad outgoing link tactics.

1 -- If they get caught for link selling or buying. I'm amazed how many people request to buy/sell links in public forums sometimes.
2 -- If they link out to a "bad neighborhood" of sites. High risk sites like gambling/adult or any sites penalized by Google.