CarMax, Virgin America, others abandon Clippers' ship
A fan holds a sign in protest of Los Angeles Clippers owner Donald Sterling in Game Four of the Eastern Conference Quarterfinals during the 2014 NBA Playoffs.
The NBA is still investigating the legitimacy of a recording that appears to show Los Angeles Clippers owner Donald Sterling making racist remarks, but action from the corporate world was swift and decisive. Several major sponsors of the Clippers either "paused" or pulled their support from the team.
The used-car retailer CarMax and Virgin America both announced they will cut ties to the Clippers immediately, while insurance company State Farm and the auto maker Kia Motors have suspended their sponsorships. It is difficult to be exact with the numbers on how much each company pays in sponsorship, but it will certainly be a blow to a team that was otherwise having a strong year.
Listed No. 13 on Forbes' list of NBA team valuations, the Clippers are currently valued at $575 million, though many estimate the team could sell for more than that. It is also worth noting that Sterling bought the team in 1981, when they were based in San Diego, for $12 million.
This is not the first time the Clippers' owner has faced accusations of this nature -- in 2009, Sterling paid a settlement of $2.725 million in a federal housing discrimination case in which he was accused of excluding black and hispanic tenants from renting properties that he owned in Los Angeles.