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.