NEW YORK — Advertisers
are backing away from the Los Angeles Clippers after racist comments attributed to the NBA team's owner. Mercedes-Benz USA said Monday its dealerships are ending their sponsorship of the Clippers in the wake of comments allegedly made by the team's owner, Donald Sterling. Used car dealership chain CarMax, airline Virgin America, and the Chumash Casino Resort are doing the same. Four other sponsors, Kia Motors America, energy drink maker Red Bull, hardwood flooring retailer Lumber Liquidators and Yokohama Tire, said they are suspending their advertising and sponsorship activities with the team. Yet another sponsor, insurer State Farm, said it "will be taking a pause in our relationship with the organization."
The Clippers declined to comment.The incident highlights the risks that companies face when they make sponsorship deals. The deals can bring goodwill when things are going well, but brands face a tough spot when they link themselves with teams or athletes that become mired in controversy. Advertising experts say that once the bad news it out there, a negative association could have already been made
in the eyes of consumers.
