The Denver Broncos could be out of a large chunk of change soon, after news has surfaced that Sports Authority, who owns naming rights to the team’s stadium, has filed for bankruptcy after signing a 25-year, $150 million deal back in 2011.
According to the Denver Post, Sports Authority filed for Chapter 11 bankruptcy protection after “months of speculation that Sports Authority has overextended itself.”
Sports Authority is due to make a $3.6 million payment on August 1.
Whether the Broncos actually see that money remains to be seen, but the team executives don’t seem too worried.
“Sports Authority has been an excellent partner with our organization for the past 10 years,” Broncos V.P. of public relations Patrick Smyth said, via 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.”
Ultimately, if Sports Authority is unable to continue making payments and violates their contract, it will only be a matter of time until the Broncos find a replacement.
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