The Denver Broncos football organization and its affiliate, Stadium Mgmt Co LLC, have recently launched a civil suit against their erstwhile official coffee collaborator, Drive Coffee Inc. This legal action, initiated in a Colorado court, asserts that Drive Coffee is in breach of their agreement by failing to settle a substantial financial obligation of $1.5 million and by illicitly utilizing the Broncos' intellectual property. This dispute highlights the complexities that can arise from sponsorship agreements, particularly when one party allegedly reneges on financial commitments and continues to leverage a brand's identity post-termination.

The contention centers on a multiyear sponsorship agreement forged in December 2022, which designated Drive Coffee as the "official coffee partner" of the Denver Broncos. This partnership permitted Drive Coffee, a company established in 2018, to produce and market Broncos-branded coffee products. These products included unique oil-can-style packaging, alongside ready-to-drink cold brews and other direct-to-consumer offerings. Drive Coffee also held a notable partnership with Formula 1, further cementing its presence in the sports sponsorship landscape.

However, the collaboration reportedly soured, leading to Drive Coffee's alleged cessation of operations around May 2024. At that time, the company's official website became inactive, and its social media channels stopped receiving updates. The Denver Broncos and Stadium Mgmt Co LLC's legal filing in Denver County stems from claims that Drive Coffee has not only defaulted on the agreed payment of $1.5 million but has also persisted in commercial activities that leverage the Broncos' brand without proper authorization. This alleged misuse of intellectual property, combined with the outstanding financial debt, forms the core of the Broncos' civil action, seeking redress for what they consider a violation of their contractual terms.

This case underscores the critical importance of clearly defined terms and robust enforcement mechanisms within sports sponsorship agreements. The Broncos' legal pursuit against Drive Coffee Inc. serves as a prominent example of how major sports franchises are prepared to protect their brand and financial interests against alleged breaches by their commercial partners, particularly when significant sums and brand integrity are at stake.