PayPal Calls To End Ties With NBA's Phoenix Suns For Owner Accused Of Racism

PayPal Calls To End Ties With NBA's Phoenix Suns For Owner Accused Of Racism
  • PayPal Holdings, Inc PYPL threatened to scrap its sponsorship of the National Basketball Association's Phoenix Suns lest the team's owner accused of racism retains control of the franchise despite the suspension, the Financial Times reports
  • Robert Sarver, the team's owner since 2004, has been accused of using racist slurs on multiple occasions and fostering a culture of bullying and discrimination against female employees.
  • The NBA suspended Sarver for a year and issued a fine of $10 million, which basketball player LeBron James and other team and sports executives considered too lenient.
  • "We have reviewed the report of the NBA league's independent investigation into Phoenix Suns owner Robert Sarver and have found his conduct unacceptable and in conflict with our values," PayPal CEO Dan Schulman stated. 
  • PayPal sought disciplinary action beyond the one-year suspension, CNBC reports.
  • The league is under pressure to defend its penalty for Sarver, which is less severe than its decision in 2014 to force Donald Sterling to sell the Los Angeles Clippers for making racist comments. 
  • NBA commissioner Adam Silver described his "disbelief" over Sarver's conduct documented in the Wachtell report but said the league had dealt with it somewhat.
  • Price Action: PYPL shares traded lower by 1.52% at $92.57 in the premarket on the last check Monday.

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