Denver Broncos want to sever sponsorship agreement after Sports Authority misses $2.1M in payments
Alicia Wallace, The Denver Post
7:21 AM, Jun 1, 2016
DENVER - The Denver Broncos now want to sever their sponsorship agreement with the soon-to-be defunct Sports Authority.
The bankrupt sporting goods retailer failed to make quarterly payments to the team, breaching its contract with the Super Bowl champs, attorneys for the Broncos wrote in a motion filed Friday with the U.S. Bankruptcy Court in Delaware.
“Yet, because of the protections afforded by the bankruptcy code, (Sports Authority) continues to enjoy exclusive sponsorship rights as provided for in the sponsorship agreement despite its failure to make two quarterly payments totaling $2,105,945.00,” the Broncos said in the filing.
The motion is the latest move by the Broncos and the Metropolitan Football Stadium District to keep Sports Authority from selling or auctioning contracts related to the team and Mile High Stadium. The retailer has a separate naming-rights contract the stadium district.
Sports Authority’s trademarks, intellectual property and some leases are expected to be auctioned on June 23, stadium district spokesman Matt Sugar said Tuesday. Bloomberg News, citing unnamed sources, said the company’s term-loan lenders were among those claiming to have collateral rights over Sports Authority’s intellectual property and contracts, including the naming-rights agreement.