Denver Broncos Look to Take Sports Authority Name Off Mile High

[wsj-responsive-image P="//si.wsj.net/public/resources/images/BN-OG366_milehi_P_20160531125300.jpg" J="//si.wsj.net/public/resources/images/BN-OG366_milehi_J_20160531125300.jpg" M="//si.wsj.net/public/resources/images/BN-OG366_milehi_M_20160531125300.jpg" caption="The demise of Sports Authority has reignited a fight in Colorado over the future of the Denver Broncos' stadium, a place long tied to the city's identity. (AP Photo/David Zalubowski)" credit="Associated Press" placement="Inline" suppressEnlarge="false" ]

The owner of the NFL’s Denver Broncos is seeking to end its stadium-sponsorship agreement with Sports Authority Holdings Inc.

The team’s request to scrap the deal comes after the bankrupt retailer skipped two payments this year and made an unauthorized attempt to sell the stadium naming rights in bankruptcy court. The Broncos claim Sports Authority owes them roughly $2.1 million for 2016.

Representatives for Sports Authority and the Denver Broncos’ ownership didn’t immediately respond to comment.

The stadium deal dates back to August 2011 when, the Denver Post reported, Sports Authority took over the $120 million contract vacated by Invesco, and the Broncos’ stadium was renamed Sports Authority Field at Mile High. The agreement also allowed Sports Authority to advertise in the stadium as well as use the Broncos name and logo in ads in store and online.

The Broncos’ owners will put the request to scrap the deal before Judge Mary Walrath in the U.S. Bankruptcy Court in Wilmington, Del. on June 28.

The Denver Metropolitan Football Stadium District, a corporate and political subdivision of the state of Colorado that owns Mile High, wants the first right of refusal if Sports Authority tries to sell the naming rights. The Broncos’ bid to get out of the deal comes as Sports Authority sells off its remaining assets.

Liquidators that won Sports Authority’s assets in an auction two weeks ago—Gordon Brothers Retail Partners LLC, Hilco Merchant Resources LLC and Tiger Capital Group LLC—began going-out-of-business sales at all 450 of the stores before Memorial Day weekend.

Sports Authority still has more to sell. The company has yet to hold an auction for its store leases, which have attracted bids from the likes of Dick’s Sporting Goods Inc. and Modell’s Inc., people familiar with the situation have told The Wall Street Journal. Sports Authority will also look to sell its brand name and the intellectual property it owns for certain brands sold in stores, as well as customer data lists.

Write to Lillian Rizzo at [email protected]. Follow her on Twitter @Lilliannnn