Broncos’ naming-rights partner declares bankruptcy

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It’s a good thing that the Broncos are raising ticket prices, because they could ultimately get stiffed on one of their key revenue streams.

Via multiple reports, Sports Authority has filed for Chapter 11 bankruptcy protection. Via the Denver Post, the declaration comes after “months of speculation that Sports Authority has overextended itself.” Ultimately, it’s possible all stores will be closed.

Sports Authority replaced Invesco in 2011 as the naming-rights sponsor at Mile High Stadium, with a $150 million deal covering 25 years. The next payment, $3.6 million, is due on August 1.

“Sports Authority has been an excellent partner with our organization for  the past 10 years,” Broncos V.P. of public relations Patrick Smyth recently told Mike Klis of 9News.com. “During this period, they have made  every payment as part of our sponsorship and naming rights agreement. There have been no changes to our long-standing relationship with Sports Authority.”

Even if Sports Authority goes away, the money is a drop in the much larger revenue bucket that every NFL team enjoys. Besides, just as the Broncos found Sports Authority to replace Invesco, the Broncos can surely find someone else to take over.

36 responses to “Broncos’ naming-rights partner declares bankruptcy

  1. Titleist needs to do it! They can then give the nod to Peyton and name it 5-head stadium!!!

  2. The article doesn’t spell it out, but Invesco also went away because of financial problems. Naming stadiums after yourself doesn’t seem to be that great an idea.

  3. How about a Denver pot distributor buying the rights? It would be OK, if they paid enough money.

  4. This happened to the Ravens. The original naming partner was PSI Net. They went under soon after signing the deal. M&T Bank has been the sponsor ever since.

    It was good for the Ravens because they got a better deal. I suspect a new partner will pay more due the teams recent success.

  5. First Title IX and now Chapter 11. Peyton is leaving quite the pile of rubble in his wake.

  6. seems fitting….a team with bankrupt values has a main sponsor that’s financially bankrupt.

  7. j0esixpack says:
    Mar 2, 2016 10:05 AM
    Well, this is a no-brainer:

    It would only be too fitting if Peyton Manning finished his career out in “Lipton Tea Bag Stadium”
    ———————
    Ok, huge Broncos fan here… And I have to admit that’s hilarious.

  8. This seems pretty common, and also ridiculously stupid for companies to spend that much on naming rights. I remember Gillette Stadium was originally CMGI Field…

    Considering the rockies are home to Coors, given their ties to Manning, I think Budweiser Field has a nice ring to it, lol. Cant do a better troll job than that

  9. Maybe if Sports Authority hadn’t pissed away millions of dollars to name a stadium after a corporation they wouldn’t be going bankrupt.

  10. I hope all of you cracking jokes in the comments realize how serious this is. It is an absolute disgrace and the CEO of the company needs to be put in jail. Thousands of people will now be out of work, for what? Nothing.

  11. The timing is good for the taxpayer and the team. Revenues from the naming rights deal are split between the two. The next deal will be better than the existing deal.

    (Invesco did not go under. They changed their business to focus only on institutional clients, so they didn’t need a retail brand anymore. Sports Authority took over the Invesco deal.)

  12. Is the owner a billionaire? Between all these greedy players, cities that don’t want to hand out massive amounts of welfare, and now stuff like this- I don’t know how these guys are going to survive. Better be prepared for the looting.

  13. …”I hope all of you cracking jokes in the comments realize how serious this is. It is an absolute disgrace and the CEO of the company needs to be put in jail. Thousands of people will now be out of work, for what? Nothing.”

    The main reason brick an mortar retailers are dropping like flies is that they have to charge sales tax. The national average sales tax rate is 8.4%. Best Buy, for example, has a 3.7% net operating margin. (For every $100 in sales, they earn $3.70.) To be price competitive means that Best Buy would lose $4.70 on every $100 in sales. Until congress or the states begin collecting sales tax from internet retailers, brick and mortar retailers will continue to fail. You can’t blame it all on the CEO. If running a business were easy, everyone would do it.

  14. maximusprime107 says:
    Mar 2, 2016 11:25 AM

    I hope all of you cracking jokes in the comments realize how serious this is. It is an absolute disgrace and the CEO of the company needs to be put in jail. Thousands of people will now be out of work, for what? Nothing.

    —————

    Small time compared to wall street and GM. Yet our great president and congress bailed them out.

  15. Didn’t even know they played at Sports Authority Field of whatever it’s called. What a compete waste of $150 million dollars, sponsoring a professional teams stadium is. I can see why they went bankrupt.

  16. Well after he got kicked out if the house that Peyton built… maybe they can call it the retirement home after all that’s where guys like Daniels Ware and Mathis will likely finish their career

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