Autumn Budget 2025
When negotiating a new sponsorship deal for a sportsperson, it’s important that the deal covers essential information that protects your client and gives them the deal they deserve.
The more information you have on what is needed, the better deal you can agree for your sports client.
What details need to be included?
One of the main agreements that needs to be included is a clear description of rights and what is being granted.
With deals becoming much more creative, the rights should be clearly described and outlined.
In addition to this, you also need to clarify the payment structure on things such as performance bonuses and these are detailed and accounted for in the sponsorship agreement.
Doing this protects the sportsperson from their efforts and achievements being undervalued by the sponsorship company.
However, if the sportsperson underperforms for reasons outside of their control, it’s essential that your agreement includes a force majeure which protects them.
This is valuable, particularly if the sportsperson is being sponsored for a one-off event.
The deal must clarify what happens in these circumstances and state what happens in regard to alternative rights or plans, or rearranging the event.
The structure you agree on may also include value-in-kind deals where sponsors provide specific products or services as part of the agreement.
There are also IP rights and exclusivity to consider. The agreement in place should see both the sportsperson and the company sponsoring define and limit the scope of IP rights that are granted.
If these rights are not protected in the contract agreement, it could suggest misuse, which will affect the brand’s value and image.
It’s important to note that it is standard practice for both parties to issue guidelines on how the brand is used to avoid any long-term issues.
The deal you agree must also clarify the position of exclusivity, where details are outlined on what behaviour is deemed as working with a competitor.
You may also choose to note down within the agreement who the potential competitors would be.
Clarifying liability and termination clauses
Any contract should include liability and termination details so each party understand what needs to happen in these circumstances.
Liability factors for both parties should be laid out so they understand what can happen if any details are breached like the IP rights.
In addition to this, the standard termination rights must be outlined by law but you should also consider inserting a clause that protects the sportsperson from any reputational impact.
Sponsors will want the definitive right to terminate the deal in place, but should insert additional clauses that are objective, like criminal or doping charges.
There is also the option to include a break clause, which allows either party to terminate the contract without a reason and it’s a much smoother exit, but this is usually suited to long-term sponsorship deals.
The importance of negotiating the right deal
It’s essential you negotiate the right deal and include all the important clauses to protect your client, but if you need help securing the right deal, we are here to help.
We have vast amounts of experience negotiating deals and supporting athletes from a variety of different sports.
Our team will listen to your plans, discuss what you have initially agreed and help you clarify the important details that need to be included.
We can act on your behalf and sort out the legal necessities to ensure you get the best deal.
If you need support negotiating the right sponsorship deal, speak with our expert team for advice and guidance.
Related posts
