The Los Angeles Clippers are beginning to pay a financial cost for the audiotapes released this weekend featuring alleged racist comments from owner Donald Sterling. Looking at the companies that have announced they are ending or suspending their relationships with the team include: State Farm Insurance, Carmax, Kia Motors and Virgin Airlines.Â
These are not random changes as most of these companies likely have a sizable share of their revenue coming from African American customers. Here in Dallas, State Farm appears to have a solid relationship with the community. Kia and Carmax primary target audience would certainly include mid to lower income workers with challenged credit.
Now the fact Virgin Airlines dropped their relationship is a bit impressive, because it is likely not the most popular airline within the African American community.
It will be interesting to see how this continues to play out and what companies feel like they can afford to risk ticking off African American shoppers. For example, what are the beer companies going to do? What about companies that perhaps do not have a large market share coming from African Americans – but perhaps just think it is the right thing to do?
Only time will tell.
Will brands that continue to do business with the Los Angeles Clippers be on your radar?Â
