3. Force majeure. In most sponsorship agreements, the term “force majeure” is often a well-defined term. Although the applicable definition can easily consume half a page of text, the essential meaning of the term (French for “higher force”) is an event or effect that cannot be anticipated or controlled. Regardless of its simplicity or complexity, the appearance of a force majeure event can have significant consequences for the parties and their respective obligations arising from the sponsorship agreement. For example, a force majeure event could excuse an organizer`s delay in making certain sponsorship rights available or a sponsor`s delay in carrying out maintenance and/or capex obligations. However, an excused performance of force majeure may, at first, require a minimum of burden on the part of the party, which is otherwise required to implement it, and may expire after a certain period of time. With respect to COVID-19, a threshold question will be whether the COVID 19 pandemic falls within the definition of the force majeure sponsorship agreement (and this is not to be expected to be the case). For more details on force majeure, click here. Sponsorship sales require a clear agreement with defined roles and responsibilities to succeed.
As a marketing tool, you can connect to the right brands and products to improve your relationship with your audience, while connecting with your audience, members, fans or donors. Events bring you into the community to create moments of experience that help raise brand awareness, while sponsorship helps create credibility and much-needed funding. 1. Put good requirements. The fundamental compromise in each sponsorship contract is the provision of valuable branding opportunities and consumer visibility (for the sponsor) in exchange for lucrative sponsorship fees (for the organizer). The potential benefits to both parties increase with the profile and frequency of the underlying events at the venue, and the benefits are further enhanced with respect to the naming rights of the venue. In order to correct a scenario in which the venue is unable to meet its expected events, sponsorship agreements often contain “do well” provisions to correct lost sponsorship opportunities that are otherwise related to the fees paid by the sponsor. These “do well” rules can be very different and their application depends on a large number of details such as (i) applicable trigger events (for example). B, cancellations of major events or events), cancellations due to work stoppages within the sports league or leagues concerned and cancellations due to external factors such as force majeure), (ii) the contractual compensation model and associated sponsor helmets (expense refunds, (iv) that certain contractual obligations are automatically changed (e.g. B annual payments guaranteed by the sponsor) and (v) the unique dynamic of the relationship between the owner of the place and the respective sponsor (length of relationship, amount of sponsorship fee, etc.).
Another peculiarity of the sports industry is the growing possibility of organising competitions without spectators and how such events could still satisfy the sponsorship opportunities expected of the sponsor. While the packages you provide describe what a sponsor buys, a sponsorship contract offers something that is legally binding. It is really helpful to make sure that your sponsorship proposals are very clear, because it allows you to base your agreement on something more solid. If your agreements are made with the same list for each sponsor, you can secure your agreements and make sure that both parties are familiar with what is expected of them and fully understand.