Denver advertising agency CAA is warning of fallout if Star advertisers are unable to secure the required approval to make the brand a sponsor of its next football game.
In a letter sent Monday to the league, the ad agency said that the Star boycott could have a devastating effect on its bottom line.
If we can’t find a solution for the boycott, we will need to consider closing our doors and cutting our staff, the letter said.
In December, the Star began a national boycott after the league’s governing body decided to move forward with the NFL Network’s broadcast rights deal.
The boycott, which was sparked by a tweet from former Denver Broncos defensive lineman Aaron Lynch that featured an image of a star with a Confederate flag, has now spread to other professional sports leagues and led to some advertisers pulling out of future games.
The letter from CAA said that even if the Star sponsors can secure a TV deal for its next game, it will still face a risk of losing the sponsorship if the boycott continues.CAA is advising its clients to consider the possible effects of the boycott on its advertising revenue.
The letter warned that if the network were to refuse to renew the Star sponsorship, the agency could have to cut staff.
It said that it may be better to cut its payroll and cut back on its other activities, such as its marketing, in order to avoid losing a significant portion of its revenue, such the agency has already experienced.
In November, CAA announced it was ending its relationship with the Denver Broncos and its relationship was ended because of the team’s decision to leave the NFL.