A scene from Invesco Field at Mile High during the 2008 Democratic National Primary on Aug. 28, when Barack Obama accepted the nomination for President of the United States. An estimated 84,000 people were in attendance.
Goodbye Invesco Field, hello Sports Authority Field at Mile High.
The sporting goods retailer has taken over the last nine years of Invesco’s naming rights contract with the Metropolitan Football Stadium District and the Denver Broncos of the National Football League. Signs could change as soon as Aug. 17.
The new agreement comes 10 years after Invesco first inked a $120 million, 20-year deal for naming rights at the stadium, paying out an average of $6 million per year on a graduated system.
The revenue was split between the team and the stadium, said stadium district spokesperson Matt Sugar, over two separate contracts for $60 million over 20 years.
“The district had a graduated payment system for Invesco, so there is still $32.3 million left on the contract, which Sports Authority has now taken over,” said Sugar. He did not know what portion of the Broncos' $60 million contract with Invesco, now transferred to Sports Authority, remained but said he thought it was around half of the original $60 million.
“I don’t know whether or not the Broncos were also paid on a graduated scale,” Sugar said.
The idea to drop the naming rights contract came from the stadium and Sports Authority in a “compelling proposal,” said Douglas Kidd, managing director of Invesco’s corporate affairs.
“When Invesco originally entered into this transaction we had a much larger presence in Denver… and sold mutual funds directly to the public,” said Kidd. The company now sells mutual funds through investment advisors.
Sugar said, “Invesco has been a great partner… they paid on time or ahead of time.”
The new deal with Englewood, Colo.-based Sports Authority follows the same guidelines as Invesco's contract — revenue is split equally between the Metropolitan Football Stadium District and the Broncos.
Sports Authority is the third-largest private company in Colorado and has stores all across the country. Assuming the naming rights of the stadium where the Denver Broncos play will advertise that the company’s headquarters is in the state.
This nine-year deal is far less than the 25-year, $150-million deal Sports Authority pitched to the district and the Broncos.
“What the stadium district voted on today was to go ahead and allow Invesco to assign the remainder of the naming rights to Sports Authority,” said Sugar. The additional 15 years that Sports Authority proposed will be decided at a later meeting — but not too much later.
“Negotiations will probably happen pretty rapidly,” Sugar said.
Interviewed for this story: Douglas Kidd, (404) 479-2922; Matt Sugar, (303) 244-1008