McDonald’s and Allen Media Group reached a settlement in Byron Allen’s racial discrimination lawsuit.
Black-owned media companies have often expressed frustration with getting major corporations to advertise on their platforms despite boasting numbers that should make sponsors salivate.
While some have limited their frustration to social media posts and speeches, media mogul Byron Allen took his frustrations to the courtroom, accusing the fast-food chain McDonald’s of discriminating against Black media in a $10 billion lawsuit.
However, Reuters reported, “McDonald’s has settled a $10 billion lawsuit by the media entrepreneur Byron Allen accusing the fast-food chain of ‘racial stereotyping’ by excluding Black-owned media from much of the advertising budget…
“McDonald’s said it will buy ads ‘at market value’ for Allen’s companies ‘in a manner that aligns with its advertising strategy and commercial objectives…’
“In a statement, Allen’s companies said ‘we acknowledge McDonald’s commitment to investing in Black-owned media properties and increasing access to opportunity. Our differences are behind us.”
Exact terms of the settlement were not released.
In the lawsuit, Allen alleged that McDonald’s labeled his Entertainment Studios as a Black-owned media company and limited his platforms to the fast-food chain’s “de minimis” ad budget instead of the much larger general advertising budget.
Many Black-owned media companies do not limit their audience to the Black community.
Consequently, categorizing them as minority media restricts the advertising revenue they can generate.
Allen Media Group consists of The Weather Channel, Justice Central, Pets.TV, Cars.TV, Comedy.TV, ES.TV, MyDestination.TV, Recipe.TV and more.
Also, Allen’s Entertainment Studios has released major motion pictures like “Chappaquiddick,” “Hostiles” and “The Case for Christ.”
Reuters added, “He also accused McDonald’s of lying when it pledged in 2021 to boost national ad spending with those media to 5% from 2% by 2024.
“Allen said he relied on that pledge when seeking business from McDonald’s, only to be rebuffed, and that his Allen Media Group represented more than 90% of Black-owned media.”
AfroTech reported that “(Allen) launched Allen Media Group over 30 years ago with a single talk show. Today, his portfolio includes The Weather Channel, The Grio, HBCU GO, other streaming networks, and multiple local TV stations. Allen, as AfroTech previously reported, hired Moelis & Co. to explore the sale of 28 network affiliates, a move that signals his evolving business strategy.
RegalMag.com has also previously reported on Allen’s discrimination lawsuit against McDonald’s.
In December 2004, Golden Herring of RegalMag.com reported on a judge who declined to dismiss Allen’s lawsuit against McDonald’s.
Herring wrote, “In the lawsuit, Allen claims 40 percent of McDonald’s customers are Black.
“However, the suit claims that out of a $1.6 billion advertising budget, McDonald’s spent less than $5 million with the Black press and Black-owned media.
“Allen filed his lawsuit the day after McDonald’s vowed to increase national spending with the Black press from two percent to five percent by 2024.
“McDonald’s also promised to increase spending with Hispanic, Asian, women and LGBTQ+ owned media entities.
“Allen said, ‘We have overwhelming evidence against McDonald’s—who has been sued by its Black executives, Black franchisees, and their global head of security—for racial discrimination. It is time for the McDonald’s Board of Directors, stockholders, and civil rights organizations nationwide to call for the resignation of CEO Chris Kempczinski, who was caught sending racist text messages about Black and Hispanic people.’
“Despite the lawsuit, McDonald’s said that the federal judge’s decision simply meant that neither side had met the requirements for dismissal of the suit at the present time.
“McDonald’s said, ‘We are prepared to show that this case is utterly baseless. McDonald’s invested in media properties that aligned with the company’s business strategy and, like any other rational business, declined to invest in those that had low ratings or failed to reach the company’s target audience.’
“Allen, a media veteran, began his distinguished career as a comedian before transitioning into an entrepreneur and executive…
“Although Allen has never strayed away from the Black community when it comes to his media entities, he has never limited his reach to the Black community.
“Therefore, McDonald’s relegating his companies to Black media does not fully represent his communications empire.
“Regardless, many Black-owned media companies have long criticized corporate America of discrimination against them when they pass out advertising dollars.
“Journalist Roland S. Martin has been a long critic of corporate America not advertising with the Black press.
“Therefore, many Black media companies are eagerly anticipating the results of Allen’s lawsuit against McDonald’s.”
Now that the results of the lawsuit are in, many Black-owned media companies hope that the settlement will encourage advertisers to treat minority-owned companies the same as White-owned companies when passing out sponsorship revenue.
Another obstacle that minority-owned media might possibly need to overcome is pressuring advertising companies to do business with them at a time when diversity, equity and inclusion (DEI) is under fire from President Donald Trump and his administration.
Spending money fairly and not discriminating against Black-owned media might upset President Trump, and many companies have showed an unwillingness to get on the wrong side of the Trump administration and their efforts to eliminate diversity and equality.
