What You Can Expect (Deals) as Sports Authority Stores Close

Photo (cc) by Phillip Pessar

Just two months after filing for Chapter 11 bankruptcy, Sports Authority is closing up shop, shuttering all 450-plus of its stores across the nation.

The Colorado-based sporting goods company — once the largest sporting goods store chain in the United States — initially planned to restructure and close a limited number of stores as it struggled to compete with other mainstream retailers and online merchants.

But according to the Los Angeles Times, Sports Authority was unable to reach an agreement with its creditors and lenders.

Instead, Sports Authority found itself on the auction block where liquidators outbid competitors for the stores and will take control of its assets. Sporting goods store competitors Dick’s Sporting Goods Inc. and Modell’s Inc. each put in offers for small groups of the stores. The LA Times said the company’s store leases will be sold at a later time.

For consumers, the silver lining to the stores’ closing is the going-out-of-business sales that typically follow such an announcement, Consumerist reports. You can expect to see big sales starting as early as Memorial Day weekend and ending about Aug. 31, according to this bankruptcy document.

So if you need to purchase any sports equipment — from soccer cleats to running gear to a fishing pole — you won’t want to miss the Sports Authority liquidation sales. Says Consumerist:

You’ll see familiar faces in the store, since at least at first the liquidators will hire current employees to run the store while it closes. At first, you’ll generally see merchandise marked up to its full retail value, which is not necessarily what you would have paid before the liquidation sale. Then the markdowns begin, ending when there’s nothing left but dregs from the warehouse for 90 percent off, and the shelves and fixtures are for sale.

The LA Times said Sports Authority reported $3.5 billion in revenue for 2015. The chain employs roughly 16,000 people.

One company’s demise may help another reap more profits from shoppers. For instance, Sports Authority competitor Dick’s Sporting Goods is in a good position to attract former Sports Authority shoppers, especially when you consider that Dick’s estimates that there are roughly 200 Sports Authority stores within five miles of a Dick’s — and 350 stores within 10 miles of one.

Dick’s Sporting Goods CEO Ed Stack told The Street that as Sports Authority and regional sporting goods store Sports Chalet both sell off their merchandise for cheap and close their doors for good, they’re leaving the sportswear market in turmoil.

“The long-awaited consolidation in the sporting goods market is happening — but right now it’s a mess,” Stack said on a call with analysts Thursday.

The Street noted that liquidation sales at Sports Authority and Sports Chalet will create “a short-term headwind for Dick’s Sporting Goods as consumers try to score amazing deals on sporting goods.”

According to the Denver Business Journal, there is still one big unresolved issue in the Sports Authority bankruptcy and liquidation: the Denver Broncos’ stadium, named Sports Authority Field at Mile High.

The Broncos are concerned that Sports Authority may be attempting to sell off its naming rights to the stadium without getting their authorization.

“The Metropolitan Football Stadium District, which owns the stadium, argued in filings in Sports Authority’s bankruptcy case that the stadium naming-rights contract can’t be sold off without its permission,” the Journal explained.

What do you think of Sports Authority closings its doors? Share your comments below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
Half of All Retirees Say They Fear This
Half of All Retirees Say They Fear This

Chances are good that you share this fear. Here’s a way to overcome it.

Avoiding These 5 Foods Could Save Your Vision as You Age
Avoiding These 5 Foods Could Save Your Vision as You Age

Millions of Americans may be able to prevent an incurable cause of blindness by making a basic change.

27 Things You Should Never Pay For — and How to Get Them for Free
27 Things You Should Never Pay For — and How to Get Them for Free

When you know the tricks, you can save big on all kinds of useful things that others pay for.

12 Expenses You May Be Tempted to Claim as Tax Deductions — but Shouldn’t
12 Expenses You May Be Tempted to Claim as Tax Deductions — but Shouldn’t

Thinking of trying to deduct a few of these things on your federal tax return? That could be a costly mistake.

6 Ways to Guarantee Yourself a Steady Retirement Income
6 Ways to Guarantee Yourself a Steady Retirement Income

Saving is just one part of the retirement equation. Do this now to guarantee income in your golden years.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

10 Useless Purchases You Need to Stop Making
10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

7 Social Security Rules Everyone Should Know by Now
7 Social Security Rules Everyone Should Know by Now

Confusion over Social Security is a shame, considering how many of us will need this money badly.

9 Shopping Mistakes to Avoid at Costco
9 Shopping Mistakes to Avoid at Costco

Are you missing out on serious savings at your favorite warehouse club?

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

They don’t make coffee makers like this anymore.

The 16 Cars Most Likely to Last 200,000 Miles
The 16 Cars Most Likely to Last 200,000 Miles

One automaker takes half the spots on a list of the longest-lasting vehicles.

14 Things You Should Stop Buying in 2021
14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

Is Writing a Check Still Safe?
Is Writing a Check Still Safe?

Every time you pay by check, you hand your bank account numbers to a stranger.

6 Ways to Protect Your Retirement Accounts From Hackers
6 Ways to Protect Your Retirement Accounts From Hackers

Imagine having $245,000 stolen from your retirement account — and not being reimbursed.

8 Things You Should Replace to Improve Your Life Today
8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

This Is the Most Dependable Car Brand in the U.S.
This Is the Most Dependable Car Brand in the U.S.

This brand’s vehicles are least likely to give drivers repair headaches, according to J.D. Power.

9 Deep Discounts Available on Amazon This Friday
9 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

7 Social Security Benefits You May Be Overlooking
7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

13 Amazon Purchases We Are Loving Right Now
13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

7 Hidden Sections of Amazon Every Shopper Should Know
7 Hidden Sections of Amazon Every Shopper Should Know

These little-known departments of Amazon are gold mines for deal-seekers and impulse shoppers alike.

The 6 Best Investing Apps for Beginners
The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

7 Income Tax Breaks That Retirees Often Overlook
7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.