Why a sponsorship agreement is indispensable for your event

A festival without a spectacular stage, a sporting event without eye-catching banners, or a conference without well-filled goodie bags: almost unthinkable. Sponsorship is a crucial ingredient of successful events. But without a proper sponsorship agreement the expectations of the two parties can diverge considerably. Time to take a closer look at this legal foundation.

What is a sponsorship agreement and why does it matter?

A sponsorship agreement is a contract between a sponsor and a sponsored party (an event organiser, for instance). The sponsor provides a financial contribution or services in kind, and gets something in return: name recognition, advertising or an exclusive collaboration. The sponsorship agreement records the mutual rights and obligations, so that both parties know where they stand. It prevents a sponsor expecting more in return than was agreed, or an event organiser failing to deliver on promises.

The advantages of a good sponsorship agreement

Oral arrangements are all very well, but where matters are unclear it can be remarkably difficult to make your case. A sponsorship agreement prevents misunderstandings and makes the arrangements enforceable. What if the sponsor does not pay? Or if the event is suddenly cancelled? With a good sponsorship agreement your legal position is stronger.

A sponsorship agreement also helps to manage expectations. What promotion does the sponsor get exactly? How prominently does the logo appear on the promotional material? Matters of this kind are better set down in black and white than left vague. A sponsorship agreement also provides something to build on for future collaborations: a successful sponsorship can be the basis for a long-term partnership.

What should a sponsorship agreement always contain?

A good sponsorship agreement contains at least:

• The duration and scope of the sponsorship: is it a one-off or a long-running collaboration?
• The obligations of both parties: what does the sponsor provide, and what does the organisation do in return?
• Intellectual property rights: may the sponsor use the event’s logo, and may the event use the sponsor’s?
• Exit clauses: what happens on cancellation, insolvency or reputational damage?
• Liability: who is responsible if something does not go to plan?
• Exclusivity: may the sponsor be the only provider in a particular product category?

Why legal support is essential in sponsorship

Drawing up a good sponsorship agreement is a bespoke exercise. Every collaboration is different, and standard contracts often leave crucial points open. We can help make the sponsorship agreement clear and watertight. That prevents surprises and possible disputes later. Legal advice can also be worth a great deal when reviewing a sponsorship agreement: are the terms fair? Are there any hidden risks?

Lay the foundation for a successful collaboration

A sponsorship agreement is not a luxury but a necessity for a successful collaboration. Whether you are organising a small local festival or a large-scale international conference, good legal arrangements provide a solid basis. Because let us be honest: the last thing you want is for your sponsor to drop out halfway and leave you without a budget. With the right arrangements you lay the foundation for a successful and lasting collaboration.

Would you like to be sure that your sponsorship agreement is watertight? Get in touch with us for advice.