Business

Coffee company never paid sponsorship fees

In a May 2024 hype video, an executive at Drive Coffee talks about its Centennial plant.

“We’re just a short walk away from the Broncos facility. Being the official coffee of the Denver Broncos, it couldn’t be more perfect,” the man says. “As we drive by the Broncos facility, as all of us do every morning, it gives us an opportunity to reflect on how cool it is.”

However, the Broncos have stated that Drive was not their official coffee when that video was released.

“Shockingly, Drive posted this video using the Broncos’ intellectual property after the Broncos terminated their agreement due to lack of payment and demanded that Drive stop using any of the Broncos’ intellectual property,” the team states in a new lawsuit.

Drive was established in 2018 and became the official coffee of the Broncos in late 2022. This sponsorship, originally set to last through the 2026 season, granted Drive exclusive rights to use the team’s logo on its bulk coffee, brewed coffee, and K-cups.

“As a local company, Drive Coffee produces a high-quality product that we believe Broncos Country will enjoy every morning,” said Dan Hawley, a Broncos vice president, at the time.

However, the team now alleges that Drive failed to pay the $600,000 sponsorship fee for the 2023 season or the $937,500 fee for the 2024 season. When negotiations for refinancing fell through, the Broncos ended the sponsorship in 2024 and subsequently filed a lawsuit for over $1.5 million.

“The Broncos are seeking damages for the unpaid invoices, accrued interest, and attorney fees,” their lawyer, Kevin Walton at Snell & Wilmer in Denver, wrote.

Drive’s attorney, Jacob Hollars at Spencer Fane, did not respond to a request for comment.

Related Articles

Back to top button