Sponsorship Agreements
By sponsoring a community event, business lunch or sporting team, you can engage with the community in a way that allows you to get your brand or business presence out there and “give back.” But, regardless of whether you are the sponsor or the recipient of sponsorship, you need to be aware of your legal obligations.
You should formalise any verbal negotiations you and the other party agree to with a written sponsorship agreement.
When you are negotiating a sponsorship agreement, you will need to consider the following:
Commencement Date - When will the agreement commence?
Term - How long do you intend the duration of the sponsorship agreement to be?
Option to Extend - Can this term be extended if the sponsorship works out?
Benefits - What benefits will you or the other party receive in exchange for sponsorship? (i.e. the right to speak at an event or agreed promotional activities, for example, 10% signage for an event).
Payment - What is the agreed amount to be paid or received in exchange for sponsorship?
Key Dates – What dates are agreed for proposed events, advertisements etc.?
Exclusivity Clause – Is the agreement exclusive between you and the other party? If so, you may need to consider a list of competitors you do not wish to have involved in the sponsor.
Events - What kind of events are agreed upon (i.e. online or face-to-face, or a combination)?
Flexibility - Will the agreement include a clause allowing face-to-face events to become online in certain circumstances? This is a particularly important consideration in the wake of COVID-19, as border closures and illness can prevent face-to-face obligations.
Confidential Information – Do you require your information to be treated with confidence and privacy?
Intellectual Property – how would you like your logos and documents protected from use without your knowledge?
Monitoring and Review – will you require the other party to communicate about events regularly?
Termination – What repayment obligations are you willing to agree to if either you or the other party terminate the agreement?
Please get in touch with our office if we can assist you with your negotiations or if you require your sponsorship agreement formalised
TEGAN EASTLEY I Senior Lawyer, Jenkins Legal
