After Activision Blizzard was sued by the state of California for gender discrimination, the consequences against the company have not ended, as this action has revealed other situations and details that increasingly complicate recovering its reputation.
Faced with such a situation, Coke and State Farm would be re-evaluating their sponsorships with Activision Blizzard, a decision likely to have a significant ripple effect and one that more brands could follow to steer clear of the public scrutiny the video game company is undergoing today.
It is important to note that both Coca-Cola and State Farm are the main sponsors of the Overwatch League, a professional esports league produced by Blizzard Entertainment, out of a list of seven sponsors.
The goodbye of the sponsors
With the original lawsuit, other lawsuits against Activision Blizzard have been received, so the brands continue to monitor the situation and consider whether it is best to withdraw completely.
So far only State Farm has asked that none of its announcements run during Overwatch League games this weekend. However, the US insurance company said in a statement that it is “reassessing our limited marketing relationship with the Overwatch League.”
This also occurs after the president of Blizzard himself left the company.
For its part, a Coca-Cola spokesperson assured that the company is “working with our partners at Blizzard as we step back for a moment to review future plans and programs.”
The company said it was aware of the allegations, so it continues to monitor the situation, but for now has not indicated that there are plans to delay the announcements at this time. One more is T-Mobile, who completely broke the relationship withn Overwatch League and Call of Duty League.
Activision Blizzard is still in trouble
T’s decision-Mobile, State Farm and Coca-Cola to withdraw Sponsorship is not something to be taken lightly, as the association with other brands is one of the key factors to generate income for the leagues, because although the Franchise fees and broadcast rights are another major factor, the loss of endorsements will be a severe blow to Activision Blizzard.
Although the resignations within the company have already begun, andActivision CEO Bobby Kotick vowed to fire anyone involved in the gender discrimination and harassment case, this may not be enough to convince workers and sponsors.
For now, Activision Blizzard employees have organized for strikes in front of the company, distributing themselves in coalitions of workers, to show their support for those affected and with the intention of promoting a better work environment. That is why the safest thing is for brands to step aside, at least until the cleaning within the company is finished and it can get rid of the critical situation it is currently experiencing.
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