The mass exodus of advertisers from their sponsorship and marketing deals with the Los Angeles Clippers continued ahead of a Tuesday press conference, when the NBA was expected to announce the results of its investigation into owner Donald Sterling’s alleged racist comments.
CarMax and Virgin America announced Monday afternoon that they were entirely dropping their sponsorships, while State Farm insurance, KIA, Red Bull and AQUAhydrate all decided to suspend relationships with the team. The company that makes Corona beer had initially said it was reviewing its relationship with the team, but has since decided to suspend, according to Buzzfeed.
State Farm and Red Bull made clear they would continue to support Clippers players Chris Paul and Blake Griffin, who star in the companies’ respective ad campaigns.
Since then Yokohama Tire Corporation, Mercedes-Benz, LoanMart, Southern California Ford Dealers, Burger King, Sprint, Samsung and the Commerce Hotel & Casino have ended their advertising relationships with the Clippers, according to the Los Angeles Times. Buzzfeed also reported that Lumber Liquidators chose to suspend planned advertising with the team and Mandalay Bay Hotel suspended its sponsorship.
Sportswear powerhouse Adidas ended its marketing partnership on Tuesday, according to CNBC.
Adidas is suspending its current marketing partnership with the Los Angeles Clippers. (via @JGolden5)
— Sports Biz (@CNBCSportsBiz) April 29, 2014
So far, that totals 18 brands that have distanced themselves from the basketball team.
Update: Adidas is reinstating its sponsorship of the Clippers, but it will “replace its ads and logos with the Clippers’ team logo and the slogan “We Are One,” which the Clippers have adopted in response to the incident,” the Wall Street Journal reports.
This post has been updated.
Hit 'em where it hurts…
Corporate sponsorships.
…but wait… Maybe PusLimbaugh and Sterling can buy a Football team…
Oh yeah…Pus tried and was denied …
because of his racism.
the market value for this franchise just plunged. Bleeding corporate sponsors who won’t come back until someone else owns it, and now pressure from the league for him to sell it. That pressure will only increase as time goes on.
Sterling will still cash in handsomely, he bought for $12.5M and it’s in the 2nd largest media market in the US. But surely this incident has cost him at least $100M and perhaps more, had he sought to sell the franchise of his own initiative before last week.