In the wake of Clipper’s owner Donald Sterling’s alleged racist remarks several companies have taken action to either cut-off sponsorship funds completely, or to just temporarily withhold support until more clarity is established.
The first company to react to Sterling’s hate speech, which was first brought to light on the celebrity gossip/news site TMZ, was State Farm insurance. At first it seemed they were going to completely cut their ties with the Los Angeles Basketball team, but have since recanted, saying in an official statement that the brand would only be “taking a pause” from lending its support for the team.
Next came CarMax, which took a more extreme position, completely ending their relationship with the Clippers. After CarMax’s hardline stand Virgin America took a similar position and withdrew their sponsorship as well. Joining the avalanche of brands ending support for the LA Clippers was Mercede-Benz, cutting all ties completely. A presenting sponsor, the Chumash Indians has also decided to end ties with the beleaguered Los Angeles team.
“I would advise any of my clients to distance themselves completely from the situation,” said David Spencer, a sports marketing expert for Talent Resources. “I don’t see a negative of jumping ship at all. The only negative would be to stay on the sinking ship.”