The fallout continues for Activision Blizzard after the state of California sued the video game behemoth for gender discrimination. Since July 21, new lawsuits have come forth and added details have emerged. Now, Coca-Cola and State Farm are both reevaluating their sponsorships with Activision Blizzard, a decision that would likely have significant ripple effects.

Coca-Cola and State Farm are major sponsors for the Overwatch League, as they are two of the seven sponsors for the esports league. However, as Activision Blizzard is getting hit with more lawsuits and things are continuing to unfold, the two brands are monitoring things and considering pulling out entirely. State Farm has already taken some action.

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State Farm has requested that none of its advertisements run during this weekend's Overwatch League matches. In a recent statement, the insurance company said it is "reevaluating our limited marketing relationship with the Overwatch League." The controversy around the entire situation may simply be too much, as even Blizzard's President recently stepped down. Brands like State Farm may believe that the juice is not worth the squeeze.

In the case of Coca-Cola, a spokesperson recently said that the company is "working with our partners at Blizzard as we take a step back for a moment to revisit future plans and programs." Coca-Cola is aware of the allegations and is monitoring the situation but has not yet commented on if it is going to pull advertisements at this time. Meanwhile, T-Mobile has ended its sponsorship with the Overwatch League and Call of Duty League entirely.

The importance of sponsorships with T-Mobile, State Farm, Coca-Cola, and the like cannot go understated. The partnership is a key way to bring in revenue for the leagues. Franchise fees and broadcasting rights are another big factor, but losing sponsorships will be a big hit to Activision Blizzard. Even as the head of HR at Blizzard leaves the company and Activision CEO Bobby Kotick promises to fire anyone responsible for the gender discrimination and harassment, it may simply not be enough for some of the sponsors.

Activision Blizzard employees have formed workers coalitions and staged walkouts as a sign of support to those who have been affected and as an attempt to create a better working environment moving forward. The hope is that change is on the way. But even if a massive cleanup takes place, brands may not want to be attached to this type of high-profile disaster in the present.

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Source: WashingtonPost