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Billionaire Stan Kroenke's sports holding company, which owns the Denver Nuggets and other professional sports teams, sued a Denver-based hot dog shop chain in state court, alleging the food vendor owes more than $860,000 in sponsorship fees as part of a deal to promote its brand at the Ball Arena during sporting events.

Kroenke Sports & Entertainment LLC, which also owns Ball Arena, said in a complaint filed Tuesday it entered into a sponsorship agreement with Biker Jim's Gourmet Hot Dogs that spans from July 2022 through 2025. The hot dog company missed $250,000 of payments for the first year that were due in March and July 2023 according to the lawsuit.

The agreement allowed Biker Jim's to operate a concession stand and a portable kiosk inside Ball Arena, home of the Nuggets, and gave the vendor the right to have its products sold elsewhere in the stadium, Kroenke Sports noted. It also gave the hot dog company access to a 20-person suite for a few Colorado Avalanche and Denver Nuggets games, promotional and sales opportunities at Colorado Rapids games, and other benefits, the sports company added.

"Under the agreement, Biker Jim's was able to capitalize on the success of the Nuggets, Avalanche and Rapids," the complaint read.

Kroenke said it canceled the agreement in October 2023 after Biker Jim's failed to make payments it owed for the first year of its sponsorship, and that under the deal, the sports company was still entitled to payments for that year and the next.

The suit alleges that together with postseason sponsorship obligations, Biker Jim's owes almost $868,000 before interest.

"Despite repeated demand, and despite taking advantage of the benefits provided by the sponsorship agreement, Biker Jim's refuses to pay the amounts owed under the agreement," the stadium owner wrote.

Jim "Biker Jim" Pittenger, owner of the hot dog company, and representatives of Kroenke did not immediately respond to requests for comment Wednesday.

Kroenke is represented by Kevin G. Walton of Snell & Wilmer LLP.

Counsel information for Biker Jim's was not immediately available.

The case is Kroenke Sports & Entertainment LLC v. Worldwide Hotdogs LLC, case number 2024CV31692, in the 2nd Judicial District of Colorado.