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What Happens To The Sports Authority Assets, Broncos' Mile High Stadium?

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What Happens To The Sports Authority Assets, Broncos' Mile High Stadium?

It's been known for several months now that The Sports Authority was unlikely to reorganize in bankruptcy and survive as a brand. What wasn't clear prior to this week was what exactly would happen to Sports Authority's assets. According to Goldman Sachs, things are about to be shaken up — from naming rights of the Broncos' stadium to the physical locations.

450 Store Locations

Store locations garnered very little interest at auction. Dicks Sporting Goods Inc (NYSE: DKS) bought leases for 29 locations. A handful of leases have been sold back to landlords.

Logo

Dick's also purchased the Sports Authority banner. This means Dick's can stop the use of Sports Authority branding in marketing.

Related Link: Dick's Sporting Goods, Academy Sports Interested In Acquiring Sports Authority Assets

Mile High Stadium Naming Rights

Naming rights for the Denver Broncos' home have not hit the auction block yet. The owner of the stadium, the Metropolitan Football Stadium District, is arguing naming rights cannot be sold without its permission. Several marijuana companies have made offers for naming rights.

Inventory

Most of Sports Authority's inventory will be sold by liquidators. Names include Tiger Capital Group, Hilco Global and Gordon Brothers.

The big winner with all Sports Authority locations closing is Dick's; shares are up 17 percent in 2016 compared to a 0.2 percent drop in the S&P 500. Sports Authority filed for bankruptcy in March.

Posted-In: denver broncos Goldman Sachs Gordon Brothers Hilco GlobalNews Asset Sales Sports General Best of Benzinga

 

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