Legally Binding Sponsorship Agreement

It is the most important provision that highlights the procedures and the reasons for the postponement and cancellation. The provision defines the procedure and reasons for termination and what will happen after termination. Sometimes the termination clause gives sponsors the right to terminate the contract when the organizers resign or damage to the reputation. The provision also specifies what to do in the event of an infringement. This clause should be deliberately negotiated to avoid future conflicts. Official supplier status – where the sponsor becomes the official supplier of a product or service for a sponsorship topic (for example. B Tetley Bitter to the England Rugby Union Team). Secondary sponsorship – z.B. Sponsoring a specific part of an event, for example. B of one of the games or performances of the event or series. Branding – includes the right to integrate the sponsor`s branding into as many items as possible, such as participants` clothing. B, messages on display screens and computer screens, branding at press conferences or interviews with participants.

The agreement may also give the promoter the right to combine the rights holder`s trademark with that of the sponsor. Exclusiveness and “clean places” – The success of a sponsorship depends in large part on the exclusivity granted and whether the places in question are “clean”. Sponsorship rights may be granted to a number of parties, but these rights are generally limited to one per type of product or service. The sponsor is not obligated to insure existing agreements that are in conflict with the sponsor (for example.B. when Carling began sponsoring the F.A. Premiership, FC Liverpool was subject to an existing sponsorship with Carlsberg, which limited Carling`s ability to advertise at Anfield). In an initial review of a proposed sponsorship contract, there are a number of key elements that sponsors should check. The checklist below is not exhaustive and, in fact, for some types of agreements, there will be key aspects that will not be addressed below.