The Broncos now "want to sever their sponsorship agreement with the soon-to-be defunct Sports Authority," claiming a breach of contract after the retailer "failed to make quarterly payments" to the team, according to a motion cited by Alicia Wallace of the DENVER POST. The motion is the "latest move by the Broncos and the Metropolitan Football Stadium District to keep Sports Authority from selling or auctioning contracts related to the team and Mile High Stadium." The retailer "has a separate naming-rights contract" with the stadium district. MFSD Dir of Stadium Affairs Matt Sugar yesterday said that Sports Authority’s trademarks, intellectual property and some leases are "expected to be auctioned on June 23." Sports Authority was "required to make graduated annual payments" between $6-9M "split evenly between the stadium district and the Broncos." Those contracts, however, "have separate payment schedules." Sports Authority’s next payment of $3.6M to the stadium district "is due Aug. 1, leaving the district in a holding pattern." The Broncos’ sponsorship contract -- which "includes a non-exclusive license to use the team’s trademarked logo in places such as websites, advertising and in-store signs, and elements of the stadium naming-rights deal -- requires quarterly payments" (DENVER POST, 6/1).
