Are you sponsored? Does your company sponsor individuals? Here’s what you need to know!

In Contracts 101 by Shannon Montgomery

Whether you’re sponsored now, want to be in the future, or want to extend a sponsorship to a few influencers to help your company grow, you’re going to sign some type of an agreement. There are certain things this agreement, or contract for our purposes, needs to include. This post will go over a few of the basics to look for, and to ask for if they aren’t already included!

Negotiate

First and foremost I want you to realize that it doesn’t matter what side you are on, this contract can and should be negotiated by you or your representative. Both sides need to come to an agreement that will be beneficial to both parties, and of course allow for a happy working relationship.

Key provisions to look for:

Time:

One of the main provisions a contract should contain is a time provision.  How long is the agreement in place? When will it start and when will it end? Its important that these terms are written out so each party knows how long they are obligated to perform under the contract.

Another thing to think about is renewal periods. Is there a provision in place that will allow either side to renegotiate the contract and extend for another period of time?

Finally, consider how the contract will end. Can the relationship end at any time for no reason? As the sponsored athlete you may want to request proper notice be given before the company can pull your sponsorship. As the company you may need to include language allowing you to end the agreement early if the athlete or sponsored party is no longer representing your brand the way you need them to.

Compensation

What does the compensation package look like? There are a million ways to compensate a sponsor whether it be through free product, entry fees for competitions, or actual money. Whatever the case may be, that needs to be clearly expressed in the contract before either party begins to work together.

Expectations

As the athlete or sponsored party it will be extremely important that the contract fully and completely explain what you are required to do in order to fully perform the agreement. For example, do you need to post on social media about the company or brand? Are you going to travel for the company? If so, how often? And will they pay for your travel? These are just a few examples of what a company may require of a sponsored party, however this is obviously just the tip of the iceberg in regards to what your working relationship could look like. Whatever that is, it must be written into the contract in terms that both sides fully understand.

There are many other provisions an attorney would require a contract to contain. Clauses such as indemnification, non disparaging, and even non disclosure clauses are found in sponsorship agreements regularly. These are nothing to be afraid of! They are arguably very beneficial for both sides. This post is just a small snapshot of what a contract can look like. Generally anything can be considered a contract, oral, written or otherwise. Be sure you fully read and understand what you are signing before doing so. If you have further questions or need help with a contract in any capacity reach out through the contact form on the website! Montgomery Law, PLLC. would love to help you out!