PGC NEWS

The Overwatch League faces the potential loss of two significant sponsors, Coca-Cola and State Farm, following the ongoing lawsuit against Activision Blizzard alleging widespread sexual harassment and discrimination.

According to a recent report by the Washington Post, both Coca-Cola and State Farm are reevaluating their partnerships with Activision Blizzard in light of the serious allegations. Coca-Cola stated they would “review” their sponsorship of the league, while State Farm has already pulled its advertising from recent competition broadcasts.

Currently, both companies, along with Xfinity, IBM, Cheez-It, Pringles, and Teamspeak, are still listed as sponsors on the Overwatch League website. However, a State Farm representative confirmed they are “re-evaluating our limited marketing relationship with the Overwatch League” and had requested their ads be removed from weekend matches.

While a Coca-Cola spokesperson didn’t mention any immediate action, they acknowledged the company’s awareness of the allegations against Activision Blizzard. They stated they are “working with our partners at Blizzard as we pause to reassess our future plans and programs.”

Overwatch League Sponsors

Employees at Activision Blizzard have been pushing for meaningful change within the company, and their efforts have yielded some results. However, the potential loss of these sponsorships represents a significant financial blow. Many sponsors are hesitant to be associated with allegations of sexual harassment and discrimination, potentially leading to further financial losses for Activision Blizzard and possible job cuts.

The timing of these allegations is particularly damaging for the company. Just weeks ago, the Overwatch League announced its official return to in-person events in September after an extended hiatus due to the COVID-19 pandemic.

CEO Bobby Kotick promised earlier this week that “people will be held accountable for their actions” and committed to terminating not only those who violated company policy but also any managers or executives who impeded the company’s investigation into the complaints.

In addition to the initial lawsuit filed in July by the California Department of Fair Employment and Housing, Activision Blizzard is facing a second legal action on behalf of investors and employees. A group calling itself the ABK Workers Alliance recently rejected Kotick’s delayed response to employees and the company’s choice of the law firm WilmerHale to conduct a review of internal policies and procedures.

This developing situation raises serious concerns about the future of the Overwatch League and Activision Blizzard. The loss of major sponsors could have a cascading effect, impacting the league’s financial stability and potentially affecting players and staff. The company’s response to these allegations and its commitment to meaningful change will be crucial in determining the long-term impact of this controversy.