The iconic Mile High Stadium was replaced by Invesco Field at Mile High at the turn of the century. That relatively new stadium, which has remained the home of the NFL's Denver Broncos, became known as Sports Authority Field at Mile High when the Englewood, Colorado-based company purchased the ten years remaining on Invesco's naming rights deal in 2011. Thus, absent unforeseen changes in Sports Authority's relationship with the Broncos, the stadium will continue to bear the Sports Authority name until August 1, 2021.
While things remain quiet on the naming rights front, the stadium operator has been busy determining whether there are opportunities to clean up its debt. Original financing for the stadium now known as Sports Authority Field at Mile High was provided in early 2002 by four banks. One of those four banks was U.S. Bank, which today announced that it has closed a deal including $112 million to refinance the home of the Denver Broncos.
"We are thrilled to bring this deal to fruition and provide Stadium Management with a significantly lower rate and better terms," said Hassan Salem, president of U.S. Bank in Colorado. Stadium Management is a reference to Stadium Management Company, LLC, which manages Sports Authority Field at Mile High and is a subsidiary of a company owned by Pat Bowlen, majority owner and Chief Executive Officer of the Denver Broncos. Salem continued, "we have been a partner of the Broncos for many years and are pleased to extend that relationship with this new financial agreement."
The owner of Sports Authority Field at Mile High is the Metropolitan Football Stadium District (MFSD), which was created for the specific purpose of planning, acquiring land and constructing a professional football stadium on behalf of the Denver metropolitan area. The stadium itself was originally financed with $300 million in taxpayer dollars (in addition to $100 million from private funding).
"Along with Stadium Management Company, the Denver Broncos are pleased to team up with U.S. Bank, a long-time partner, on the refinancing of Sports Authority Field at Mile High," said Denver Broncos President Joe Ellis. "The favorable interest rate and terms of this agreement with U.S. Bank presented a great opportunity for us. It provides additional operational flexibility, which allows for the continued reinvestment into the stadium now and in the future."
A Vice President of U.S. Bank was not willing to provide details of the rate and terms of the refinancing deal to FORBES.
Darren Heitner is a Partner at Wolfe Law Miami, P.A. in Miami, Florida, Founder of Sports Agent Blog Professor of Sport Agency Management at Indiana University and author of a forthcoming book, How to Play the Game published by the American Bar Association. Learn more about him at http://www.darrenheitner.com.
