PayPal threatens to sever partnership with Phoenix Suns if owner Sarver returns

LOS ANGELES, CA - JUNE 30: Owner, Robert Sarver of the Phoenix Suns interviews after Game 6 of the Western Conference Finals of the 2021 NBA Playoffs on June 30, 2021 at STAPLES Center in Los Angeles, California.

The jersey sponsor for the Phoenix Suns warned that it would sever ties with the team if the owner remained associated with the organization.

He was suspended from the league and fined $10 million for making inappropriate comments to female employees and using the N-word.

The team has been suspended for one year and is being asked to take action beyond that. The team's arena and ticket sales were made possible by the partnership between the Suns and PayPal.

The CEO ofPayPal said in a statement that their sponsorship with the Suns is about to end. We will not be renewing our sponsorship if Robert is involved with the Suns after serving his suspension.

The NBA's by-laws allow for a $10 million fine, but the league has imposed more significant suspensions in the past. DonaldSterling was banned from the league for life after he made a racist comment. He had to sell the team due to his suspension.

Suns star Chris Paul is one of several NBA players and the players' association that say the punishment doesn't go far enough

The sanctions fell short in addressing atrocious behavior according to Paul. My thoughts are with the people that were affected.

The executive director of the NBA Players Association said that Mr. Sarver should not hold a managerial position in the league again.

Major sponsors of the Suns were contacted by CNBC.