Thread: Bankruptcy court: Broncos can cancel Sports Authority sponsorship

Interesting read!

Judge Mary F. Walrath on Friday granted the Super Bowl champions’ May 27 motion to terminate their Aug. 1, 2011, sponsorship agreement with Englewood-based Sports Authority. Sports Authority also sought to exit the contract.

http://www.denverpost.com/2016/06/20...kruptcy-court/

Good news. Now how quickly can they do so, and get another sponsor signed up? They could use every bit of cash they can get in order to get Von signed.

Sports Authority’s sponsorship contract, which expires in 2035, is valued at more than $55.3 million, court records show. The company owes the Broncos $36 million

https://www.denverpost.com/2016/06/2...kruptcy-court/

How does this work - will the Broncos even see the $36 million, and if so, how long could that take?

Originally Posted by Denver Native (Carol)

https://www.denverpost.com/2016/06/2...kruptcy-court/

How does this work - will the Broncos even see the $36 million, and if so, how long could that take?

They'll never see it, IMO.

Originally Posted by Denver Native (Carol)

https://www.denverpost.com/2016/06/2...kruptcy-court/

How does this work - will the Broncos even see the $36 million, and if so, how long could that take?

The short answer is: they're not going to get a penny.

In corporate bankruptcy there's an order to which creditors get paid.
Top o' the list: Payroll and taxes
Next: creditors holding secured debt in order of seniority (think of multiple mortgages, 1st mortgage paid before 2nd mortgage, etc.)
After that: unsecured debt including late payments (such as the naming rights)
Last: shareholders paid for their ownership interest

Usually funds run out in paying off the secured debt. Even the junior loans are unlikely to get paid once the senior loans are paid. The last two categories will see money only if a miracle occurs. If SA had the money to get that far they wouldn't be in bankruptcy court.

(Reuters) - Tickets to watch U.S. professional football team the Denver Broncos, the winners of the 2016 Super Bowl, may be a hot commodity, but an auction for their stadium's naming rights ended this week without any bids being received.

The stadium in Denver is called Sports Authority Field at Mile High Stadium, named after the eponymous sporting goods retailer in 2011. However, Sports Authority filed for bankruptcy in March and put the naming rights up for sale as part of a court-supervised auction.

No bidders for the rights came forward at an auction of the retailer's assets held this week, Matt Sugar, the director of stadium affairs at the Metropolitan Football Stadium District, which is the owner of the stadium, said on Friday. Discussions are underway about launching a new auction for the naming rights.

AND

Prospective bidders may be worried about uncertainties in the bankruptcy court process, said Eric Smallwood, the managing partner of sports marketing consultancy Apex Marketing Group Inc. Sports Authority's creditors and the stadium's owner can object to the sale, and a bankruptcy court judge must also approve it.

full article - http://sports.yahoo.com/news/denver-...8--sector.html

Originally Posted by NightTrainLayne

They could use every bit of cash they can get in order to get Von signed.

if that's the case, you could always float them a loan. . .

So when does Kush Mart take over the naming rights?

Sports Authority Field at Mile High is in need of a makeover — of its name, at least.

The question of what will happen to the naming rights to the Denver Broncos home field has been up in the air since Sports Authority declared bankruptcy back in March.

Hilco Streambank, retained by Sports Authority to liquidate the retailer’s assets nationally, on Tuesday began marketing the last five years of the retailer’s contract with the Denver Metropolitan Football Stadium District in earnest. Other intellectual property assets — including the company’s brand name, customer database and e-commerce website sold to Dick’s Sporting Goods last month.

Companies that hope to hang their name on the public stadium have until 3 p.m. Mountain time July 19 to make an offer. Hilco Streambank acknowledges that the contract terms — established in 2001, before Peyton Manning and before the Super Bowl 50 win — are “well below current market rates.”

AND

And for the record, the new name must comport with NFL policies, and the stadium district and the league have said the likelihood that a cannabis-related company emerges the successful bidder for the Mile High naming rights are nil.

full article - http://www.denverpost.com/2016/07/13...hts-last-bids/

I don't give a flying, wet, bat fart who buys the naming rights or what signs they put up on the stadium. It will always be "Mile High Stadium", period!

I hope FaninAZ doesn't find out about this.

Originally Posted by Denver Native (Carol)

AND



full article - http://www.denverpost.com/2016/07/13...hts-last-bids/

yea those evil dispensaries. Just put up a Coors logo and be done with it. The league is such a hypocrite.

Originally Posted by ShaneFalco

yea those evil dispensaries. Just put up a Coors logo and be done with it. The league is such a hypocrite.

They're really not man. I think it's unfortunate, and the winds are changing, but it's still not legal federally or in most places around the country. It doesn't make good business sense to do that at this time. That's not hypocritical.

Originally Posted by Davii

They're really not man. I think it's unfortunate, and the winds are changing, but it's still not legal federally or in most places around the country. It doesn't make good business sense to do that at this time. That's not hypocritical.

i guess. Living in CO taints me. Just not a big deal to most people out here anymore.