Notes on the preparation of a sponsorship agreement
There are many reasons for concluding a sponsorship agreement. For the sponsored party, it's usually a very lucrative source of income. As sponsorship agreements are generally concluded for many years, they guarantee the athlete a regular income over a longer period. For the sponsor, marketing activities are the focus. Athletes are attractive brand ambassadors who make the “brand” more well known, reach a special customer group, promote employee and customer relationships, carry out networking, and improve the sponsor's image.
However, as athletes are just single individuals, there is also a certain risk that they might suffer a sudden loss of form, sustain an injury, or conduct themselves in an inappropriate manner either on or off the field of play. We answer the most important questions for you here:
What is a sponsorship agreement?
In the case of traditional sponsorship of players or athletes, the sponsor renders an agreed service to have the right to associate its own name with the athlete. There are three types of sponsorships, which vary according to the intensity of the collaboration:
- Sponsorship for purely advertising purposes
With this form of sponsorship, the sponsor wants its brand to reach the general public, especially through the number of spectators and the wider media interest in the player at an event that they participant in, for example.
- Sponsorship as a cooperation
Here, the sponsor receives not only the right to equip the athlete with their products and place their brand name and logo, but they can also implement special campaigns.
- Sponsorship as a partnership
This form of sponsorship is the most intense form of a business relationship between the sponsor and the athlete. Both parties want to profit from each other's image and, for this reason, both are interested in being associated with the other party.
What are the reasons to conclude a sponsorship agreement?
There are a variety of reasons for concluding a sponsorship agreement. For athletes, it is a lucrative source of income. For the sponsor, marketing activities and thus greater brand awareness are the focus.
What does a sponsorship agreement include?
As a rule, core elements of a sponsorship agreement are:
- Name/company, address of the parties to the contract
- Sponsorship content (placement of the logo, VIP tickets for clients, advertising space, etc.)
- Considerations of the sponsor (cash benefits, products, and services, etc.)
- Exclusion of liability
- Beginning and end of the contract
- Date and signature of the parties to the contract
Are there any formal provisions to bear in mind regarding sponsorship agreements?
No. In general, the sponsorship agreement does not have to be concluded in writing. It can be concluded orally or even tacitly. But to have proof, we strongly recommend drawing up the agreement in writing.
In the following template, you will find additional information and a template for creating a sponsorship agreement.
Here you will find a template for a sponsorship agreement.