This is bullshit.

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Yup. Bars out here in Colorado have Broncos shit in their windows all the time. I don't see a problem.

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I think it could be because the artwork wasn't licensed. When you hang a flag or other such thing inside a business, the creator must have a license to do so. I'm assuming that wasn't done first.

I'm not saying I agree with it, as this man is a small business owner who probably didn't foresee the problem. I know that, for example, bars and restaurants can get heavily fined if they're advertising showing the Super Bowl using the name, "The Super Bowl." They're protecting their copyright from becoming commonplace, because if it becomes commonplace, they lose the right to the name. Bars and restaurants normally have to use language like, "The Big Sunday game shown here!" or something similar. It sounds weird, but they're just trying to protect their name.