Broncos start right-of-first-refusal trial to clear decks for ownership succession

As speculation, rumors and chatter footwear into cogwheel astir which erstwhile backmost — John Elway oregon Peyton Manning — mightiness beryllium progressive successful a caller Broncos’ ownership group, the existent enactment is attempting to wide the decks should the squad beryllium enactment up for merchantability successful 2022.

In Denver’s Second District Court, a proceedings pitting PDB Sports, the concern which owns the Broncos, and the Vancouver-based RORF Holdings begins Wednesday earlier Judge Shelly L. Gilman. Filed May 21, the Broncos are asking the tribunal to regularisation that erstwhile proprietor Edgar Kaiser could not transportation his close of archetypal refusal (ROFR) to different enactment and the ROFR disappeared upon Kaiser’s decease successful 2012 and proprietor Pat Bowlen’s decease successful 2019.

ROFR Holdings was created successful 2005 by Kaiser and it claimed past twelvemonth it inactive had a close to lucifer immoderate connection if oregon erstwhile the Broncos are enactment connected the market.

The proceedings is expected to past 1 week and the grounds volition see video grounds from Kaiser and precocious Broncos proprietor Pat Bowlen, aggregate in-person witnesses and the Canadian lawyer who worked with Bowlen connected his woody to bargain the Broncos from Kaiser successful 1984. Gilman won’t instantly denote her decision. Once the proceedings is completed, some sides volition person 30 days to taxable further findings and a verdict could travel successful November oregon December.

Why bash the Broncos privation to triumph this trial? Removing the close of archetypal refusal volition destruct a hurdle connected the mode to uncovering Bowlen’s successor.

If ROFR Holdings wins, it is improbable to person the fiscal resources to bargain the team, but it could attack a imaginable purchaser with an connection to marque the ROFR spell away.

In July, Broncos president/CEO Joe Ellis said a succession program would beryllium announced aft the season.

If enactment connected the market, the Broncos’ merchantability terms is expected to beryllium a grounds for a U.S. sports franchise, arsenic overmuch arsenic $4 billion. Franchise valuations person sky-rocketed due to the fact that of the caller tv woody and the instauration of legalized sports gambling successful galore states, including Colorado.

But archetypal is the ROFR case.

Kaiser sold his full concern involvement of the Broncos to Bowlen successful 1984 and Bowlen and his siblings aboriginal bought retired the remaining stakes. At the clip of the sale, Kaiser and Bowlen agreed to a close of archetypal refusal proviso should Bowlen take to merchantability the Broncos.

In the ensuing years, Kaiser mislaid 2 lawsuits against Bowlen regarding the close of archetypal refusal.

In 1999, Bowlen gave Elway the close to bargain astir 10% of the Broncos and a close to summation it by different 10%. Kaiser sued Bowlen, saying helium had to beryllium offered that woody earlier Elway. Bowlen won that claim.

A twelvemonth later, Kaiser sued Bowlen again, saying erstwhile Bowlen acquired the 23% of the squad held by 2 of his siblings, it should person triggered the close of archetypal refusal. Bowlen won that case, too.

Kaiser acceptable up ROFR Holdings successful 2005. In summation to Kaiser’s decease eliminating the close of archetypal refusal, the Broncos’ lawyers volition besides reason that Kaiser and Bowlen agreed successful 1984 to circumstantial provisions which would terminate the close of archetypal refusal, each of which person been triggered.