Fees and payments are a common cause of litigation in many trade agreements. If there is a problem, it may be helpful to have a provision that describes the dispute resolution procedure in your sponsorship agreement. This will help you and the sponsor try to find a solution before you take further legal action. The common thread that needs to be removed is that the sponsor must have control. Through active engagement, before and during the sponsorship period, sponsors can ensure that the ball is always in their place. Your sponsor may prevent you from wearing competing sportswear brands. You may even want to prevent yourself from wearing brands in the same area. Sponsorship agreements often offer exclusivity on certain products. For example, MasterCard was the official sponsor of the 2006 World Cup tournament in Germany, so if you wanted to buy tickets for the event, you could only use a MasterCard. As mentioned at the beginning of this article, many people contact us to request a sponsorship contract that they can process and send to their customers for their sponsorship offers.
Our recommendation – the answer we always give – is to move away from any price of facsimile agreements. “Morals” clauses appeared in Hollywood in the 1920s to protect the interests of film studios from the privacy of their actors. Since then, they have become commonplace in athletes` sponsorship contracts. Adidas` alleged decision to terminate the 11-year sponsorship deal with IAAF three years earlier contrasts with its attitude towards FIFA. This may be because FIFA`s corruption has no direct influence on the integrity of what happens on the football field, while doping undermines the integrity of athletics events. In all cases, the sponsor has tried to distance itself from the bad publicity in order to minimize the damage caused to its brand. The risk to which the sponsor is exposed is that the public associates the sponsor with the actions of the endors (perhaps even as tolerance). As “social media setbacks” have become commonplace, brand owners need to be even more careful when they are in a strong position in the event of a problem.
The sponsor makes available to the organizer or sponsored part its products used by this organizer or party. For example, FIFA sponsors, such as Vivo, will provide their products used by FIFA; and a sponsor of a single athlete will provide them with shoes and other equipment. This was however criticized by a German consumer organisation. As a result, many organizers with similar agreements with sponsors of credit card providers will allow alternative payment options to prevent Article 81 of the EC Treaty, which prohibits anti-competitive agreements, from being put at risk. The right to terminate the contract should not be limited to a criminal conviction – it is likely that conduct that does not occur in a criminal conviction could still spark public outrage or a scandal that could damage the sponsor`s brand. Branding policies mean brand protection courses. Similarly, sponsors should, where possible, exercise full control over the message related to their brand. Sponsors should also monitor the public`s perception of their brand throughout the sponsorship period. Social media analytics tools can track online activities so sponsors can assess brand traffic and react quickly to problems.