The concern over the name of Denver’s stadium appears to have been solved in the short run, as the Denver Broncos are picking up the naming rights.
Ever since Sports Authority filed for bankruptcy this spring, the name of Sports Authority Field at Mile High has become a contentious issue. Sports Authority attempted to sell the remaining five years of the contract via asset auction, a move that was objected by the Metropolitan Football Stadium District (MFSD) and the Broncos. The issue was reaching a critical time period this month, as Sports Authority was to make a payment to the district.
The Broncos say that they will now work to find a suitable partner. Below are statements from the team and MFSD:
“Pending court approval, the Denver Broncos have assumed the Metropolitan Football Stadium District’s contract for the naming rights to Sports Authority Field at Mile High.
“This acquisition streamlines the process for securing the best possible long-term partnership for the naming rights to our stadium. As in the past, proceeds from stadium naming rights will be split 50-50 between the Broncos (who also provide sponsorship elements) and the MFSD.
“There is no timetable for securing a new naming rights agreement, and the name of the stadium—Sports Authority Field at Mile High—has not changed at this time. The Broncos look forward to working with the MFSD in establishing a new long-term relationship with a stadium naming rights partner.”
QUOTE FROM BRONCOS PRESIDENT AND CEO JOE ELLIS
“It was important for us to step up and assume this contract to expedite the shared goal we have with the Metropolitan Football Stadium District of finding a new naming rights partner. Together with the MFSD, we understand how important naming rights are to the future of our stadium.”
METROPOLITAN FOOTBALL STADIUM DISTRICT
“The Metropolitan Football Stadium District (MFSD) was informed that a motion was filed in a Delaware Court for the Denver Broncos to assume the naming rights contract for Sports Authority Field at Mile High.
“The filing of bankruptcy by Sports Authority had left uncertainty in the future of the naming rights of Sports Authority Field at Mile High. The Denver Broncos assuming the naming rights offers some clarity in the future of Sports Authority Field at Mile High.
“In anticipation of a potential court decision, the District Board directed the staff to prepare a request for proposals (RFP) to seek a valuation for a new naming rights partner. Those efforts will continue as both the court and District processes move forward.
“Pending court approval, the Denver Broncos will assume the MFSD contract with Sports Authority.
“Naming rights revenue is primarily used for capital improvements extending the life of the stadium well into the future, attempting to avoid need for public funding. The District and the Denver Broncos are currently conducting a facilities conditions assessment of the stadium and surrounding campus. Preliminary numbers indicate over $300 million will be needed over the next 30 years to maintain the facility.”
QUOTE FROM MFSD CHAIRMAN RAY BAKER
“This will allow the District to work closely with the Broncos to secure the best possible outcome for a new naming right partner. The District looks forward to working with the Broncos over the next weeks and months to secure the best deal.”
Image of courtesy of the Denver Broncos