Inevitably, the attractiveness of sponsorship in sport has reinforced the standards of the negotiation process and its final product, that is, the sponsorship contract. The new trend and the ability of companies to participate in sports sponsorships to promote their products and/or their businesses have therefore raised some questions regarding the development, negotiation, renewal and termination of a sponsorship contract, as the clarity that characterizes the relationship between a sponsor and a sponsor depends to a large extent on the successful reflection of their verbal understanding of the sponsorship contract. The sponsorship contract is a long and complex document. Nevertheless, the document has benefits for both parties if it is elaborated with precision, covering all the rights, responsibilities and obligations of the parties. Despite its complexity, sponsorship offers a win-win situation for both the sponsor and the organizers, as long as they know the main provisions. The parties must also consider their relationship as soon as the sponsorship period expires. You can agree that the sponsor has the option to renew the sponsorship contract for a specified period or to obtain the opportunity to receive an offer from another potential sponsor. When creating a sponsorship contract, it is imperative to consult a lawyer. This contribution is designed only as information and is not designed as legal advice or substitute to advise a lawyer. The last thing you want is for a sponsor to break down at the last minute. You also want to be able to move away from a sponsor if you discover something that conflicts with your ethics or brand.
Therefore, make sure that your agreement can indicate how to end your relationship and what sanctions are imposed by both parties. The main details of the termination would be the amount of the termination and the cost of the termination. Sponsors generally insist on a clause explaining what is expected if your event does not bring the benefits you have announced or if an event is cancelled or if you do not meet certain benchmarks. Testimonials that offer a refund are often requested by sponsors to ensure that they get what they pay for. This is often a percentage of the funds they have paid, but depending on the severity of the problem, a full refund could include. Legally, a force majeure clause protects a party from liability when an unforeseen event beyond its control prevents it from fulfilling its contractual obligations. The rights holder may refuse to accept the extension provisions mentioned above, as he may be limited and wishes to grant only a right of „first negotiation“. It is very likely that there will be a period of time during which the parties will have to agree on new sponsorship terms. As can be seen, the potential benefits of sponsorship in sport are numerous, as they can also lead to a path that sometimes crosses national barriers. For example, kit sponsorships on the football shirt and/or other sports teams representing their country at European level (such as the Champions League, Euroleague, etc.). The technical legal advice of a sports lawyer can outline the comparative advantages and develop a sponsorship contract with maximum legal protection, taking into account issues, including at national and international levels.
Our firm can act as an intermediary and legal representative of one of the parties and propose legal guidance in order to achieve a desirable balance between the objectives of the parties concerned. Territory The sponsor and rights holder generally needs „global“ coverage, although it depends on brand coverage, popularity and event coverage. The promoter does not want the rights holder to exclude several sponsorships in different areas, as this would weaken their association with the event.