Sponsors retreat from Activision Blizzard amid harassment scandal

Just two weeks after a lawsuit filed against Activision Blizzard revealed allegations of sexual harassment, discrimination and toxicity within the video game company’s ranks, major sponsor brands have begun pumping the brakes on their affiliation with Activision Blizzard’s properties. Professional esports property Overwatch League, which includes 20 international teams and is owned by one of Activision Blizzard’s largest subsidiaries, Blizzard Entertainment, has seen Coca-Cola, State Farm and T-Mobile all rethink their ties to it in recent days. Coca-Cola is “aware of the allegations surrounding Activision Blizzard” and is closely monitoring the situation, the beverage giant confirmed in a statement provided to Ad Age, continuing on to say that it will “take a step back for a moment to revisit future plans and programs” with the video game company. Similarly, State Farm is “in the process of reevaluating our limited marketing relationship with the Overwatch League,” a spokesman for the insurance provider told Ad Age, adding that it has also “requested that no advertisements run during the matches this weekend” while the company considers its next move. It remains to be seen what brands will appear during the next Overwatch League competition, which is scheduled for 3 p.m. ET this afternoon as Toronto faces off against London. The Washington Post reports that both Coca-Cola and State Farm ran ads during the league’s matches earlier this week. The matches are shown on YouTube Gaming. At the time of publication, both State Farm and Coca-Cola remain listed as Overwatch League partners on the team’s website, alongside brands including Xfinity, IBM and Cheez-It Grooves. T-Mobile is another top sponsor that has paused its relationship with the Overwatch League as well as the Call of Duty League, a similar Activision-owned esports outfit dedicated to the popular first-person shooter of the same name. “Last week in light of the serious allegations at [Activision Blizzard], we paused our sponsorship activities to evaluate the situation and better understand how they will address this situation,” T-Mobile said in a statement provided to Ad Age. The telecom company’s once-prominent logo was nowhere to be found during either leagues’ matches earlier this week—including on players’ jerseys, which sported duct tape where T-Mobile branding used to be, Dexerto reports. The California Department of Fair Employment and Housing last month filed a lawsuit filed against Activision Blizzard calling the company’s workplace a “breeding ground for harassment and discrimination.” That prompted employees to call for strike action while gamers have threatened to boycott the company’s titles, which include everything from World of Warcraft to Candy Crush Saga. As a result, it was announced this week that the president of the company’s Blizzard division, J. Allen Brack, would be leaving the company. Jesse Meschuk, Blizzard’s head of human resources, was also ousted following the lawsuit. Such a sudden change in reputation will likely come as a headache for Chief Marketing Officer Fernando Machado, who in April left his longtime role as chief marketer at Restaurant Brands International to join the video game maker.

Sponsors retreat from Activision Blizzard amid harassment scandal

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