This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sterling's Intransigence Heightens Pressure on Clippers' Sponsors

Stocks in this article: KMX S

NEW YORK ( TheStreet) -- Donald Sterling, the Los Angeles Clippers owner barred for life on Tuesday from the National Basketball Association, apparently has no plans to apologize for alleged racist remarks captured on an audio recorder, or sell the team.

Sterling's intransigence comes after up to 12 team sponsors said earlier this week that they were suspending or terminating sponsorships with the Clippers following the leaked of the recording by the website TMZ, a unit of Time Warner (TWX).

The first sponsor to cut tied with Sterlings' Clippers was national auto dealership CarMax (KMX - Get Report). CarMax said the comments attributed to Sterling are in "direct conflict" with its culture of respect for all individuals.


WATCH: More feature videos on TheStreet TV | More videos from Kori Hale

State Farm Mutual, the privately-held insurance company, also reprimanded Sterling for being "offensive" and said that it would take a pause in its relationship with the Clippers. Sprint  (S), Red Bull, Virgin America and Kia are among other notable sponsors to pull partnerships with the Clippers.

Still, the sponsors that have distanced themselves from the Clippers will represent individual Clipper players.

State Farm said its relationship with Chris Paul, the teams All-Pro starting point guard, was still "great." The company plans to continue its TV advertising campaign that features Paul.

Meanwhile, Red Bull said it will continue its relationship with another Clippers' star, forward Blake Griffin.

The flood of corporate announcements comes days after reports from TMZ and Web site Deadspin, alleging Sterling made derogatory statements about African-Americans in a phone conversation with his then mistress V. Stiviano. Sterling was allegedly upset that Stiviano was posting picture on her Instagram showing her posing with NBA veteran Magic Johnson and baseball player Matt Kemp.

NBA Commissioner Adam Silver is set to announce possible action by the league office on Tuesday against Sterling for his comments. Speculation is that a suspension of indefinite length and a large fine are possible options. Silver is allowed to issue a fine of up to $1 million without approval from the rest of the league's owners.

At the time of publication, the author had no position in any of the stocks mentioned.

Follow @macroinsights

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs