The Denver Broncos have the U.S. Bankruptcy Court’s permission to cancel their sponsorship contract with the bankrupt Sports Authority, the Denver Post reported today. Under the agreement, the exclusive “retail sporting goods” sponsor of the Broncos was granted a non-exclusive license to use the team’s trademarked logo in places such as websites, advertising and in-store signs; advertisements and signs. The deal also gave the retailer hospitality benefits such as box seats and Super Bowl tickets. 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. Separate from the sponsorship agreement, Sports Authority has a contract with the Denver Metropolitan Football Stadium District for the naming rights to Mile High Stadium, the Denver Broncos’ home field. Sports Authority is in the process of auctioning the naming-rights contract and has enlisted Hilco Streambank to find buyers for that agreement and for its intellectual property, including customer databases, private-label brands and domain names. But the stadium district filed a protest in bankruptcy court seeking first right of refusal if Sports Authority finds a new naming sponsor. Hilco Streambank has set a 3 p.m. June 27 deadline for bids on the intellectual property assets. The U.S. Bankruptcy Court in Wilmington, Del., has set an auction date of June 29 for some Sports Authority store leases and other remaining assets.
