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The official statement was pure trash. Using emotive language was also pretty unprofessional.

You are spot on here. Politics has no place in sport, nor plenty of other places either.

That clause should have been in black and white as part of the agreement when parties chose to participate in their events, so it was curious that Blizzard used the "public image" instead.

Bad PR, or stupidly incompetent legal team. Every major company should have that clause in their contracts.