You should check your sponsorship agreement for an exclusivity clause and make sure you understand the obligations that justify it. Otherwise, you can untnowingly violate your contract by collaborating with another brand. This could damage your reputation and lead to serious legal problems. To ensure that you benefit from the referral agreement, you must clearly define what you will receive in return for promoting the brand. You should think about whether they make it available to you: you should also consider the duration of the agreement and whether it is in progress or whether it can be renewed automatically. You should understand how to terminate the contract if the sponsor does not comply with its obligations. These are things you need to negotiate with the other party before entering into a sponsorship deal. Fees and payments are a common cause of litigation in many trade agreements. If something is in the case, it may be helpful to have a provision outlining the dispute resolution procedure in your sponsorship agreement. This will help you and the sponsor try to find a solution before taking further legal action.
Sponsorship deals are common for sports stars. This is often an undervalued area of the agreement, especially by both the athlete and the sponsor. It can often be considered a boring legal part, but it deserves careful consideration. There are three main possibilities for renewing a contract: pre-emption rights, extensions or pre-negotiation rights. I think it can be the same for today`s “influencers”, whether they are sportsmen or not. Excellent verification of the contractual sponsorship mechanism! In theory, extension agreements may seem like the simplest approach, but it may be different in practice. renewals generally involve minimal changes to the original agreement; However, if important elements to be reviewed, such as payment structures, contract duration and other tacit obligations under the Treaty, are not renegotiated, this may give rise to unnecessary disputes. When negotiating a sponsorship agreement, there are many important things to keep in mind. An obvious but essential area of the agreement to be examined is the financial utility for both the sponsor and the athlete. Financial issues such as the cost of the sponsorship agreement, the method of payment, the basis for setting the amount (e.g.B. Salary, commission or both), the number of payments, the payment period as well as the tax debt and effects should all be resolved at an early stage of the agreement.
For example, you want to make sure that you have the right to terminate the contract if the sponsor: When concluding a sponsorship contract, it is important to take into account: an example of where this can happen is when an athlete plays as a member of a club sponsored by a sportswear brand and a competitor of this brand addresses the athlete, to wear his clothes as a secondary element to the main jersey (i.e. thermal by lower class). This results in a conflict of interest, as discussed above, but may also violate the club`s current code. A brand will come to you with a sponsorship opportunity to promote its products and services. This means that you have to make something valuable available to the sponsor. Their services may include: this is a provision similar to that of the right of pre-emption; It is different, however, because it aims to protect the athlete more than the sponsor. This provision allows the athlete to have the first opportunity to accept or decline an offer from the promoter before he or she can offer it to another athlete on the open market. If you need help verifying your sponsorship agreement, contact LegalVision`s contract lawyers at 1300 544 755 or fill out the form on this page. There are an ever-increasing number of governance codes that athletes must follow….