Sponsorship agreement - practical guide for clubs and athletes

Sponsorship is important for clubs and athletes. In addition to membership fees or their own capital, sponsors provide financial security. Once a sponsor has been found, this support can also be stipulated in a contract. But what does a sponsorship contract have to say and is it even necessary? We provide the answers.

spized | sponsoring | Magazine

September 20, 2023 |

Whats’ on this page

1. 5 practical reasons in favor of a sponsorship agreement

2. What should be included in a sponsorship agreement?

3. How do I create a sponsorship contract?

3.1 Do I need a lawyer to draft a sponsorship agreement?

3.2 What do I have to consider as an association in the sponsoring contract?

4. Who has to sign the sponsorship contract?

5. Sample sponsorship agreement - incl. PDF download

6. Conclusion: A sponsorship agreement is an important safeguard for both parties and creates more transparency

5 practical reasons in favor of a sponsorship agreement

As in all business relationships, there is the possibility in sponsoring to seal this relationship with a contract. There are various reasons for this:

A contract defines your sponsorship in detail. The sponsor's "services" are listed in it.
Both parties secure themselves legally. This creates security and a fair basis for both.
Precise wording in the contract can avoid potential legal disputes.
The contract clearly clarifies how long and to what extent the sponsorship will take place. This allows both sides to plan better and you can start looking for new sponsors or an extension with the current sponsor before the sponsorship contract expires.
With a sponsorship agreement, both parties have an important document to present to the tax office.

As you can see, there is a lot to be said for signing a contract with your sponsor. In the next section, we will show you what a contract should contain.

What should be included in a sponsorship agreement?

Every contract is a legally binding "deal" that two or more parties agree on. It is therefore all the more important that the sponsorship agreement contains all the important aspects.

At this point, we would like to point out that we do not give binding legal advice regarding sponsorship contracts. You should always go over contractual matters with a professional, i.e. a lawyer, before signing or issuing a sponsorship agreement.

But we can give you a basic idea of what should be in a sponsorship agreement.

It is always easiest if you create a standard main contract. The attachments then list, for example, advertising materials, promotions or additional agreements.

This is what it can look like:

Preamble

§ 1 Subject matter of the contract: What is the content of the contract? What is it about?

§ 2 Services and granting of rights by the association: What services must the association, i.e. you, provide? What rights do you grant to the sponsor?

§ 3 Services of the sponsor: What does the sponsor have to deliver to you within the scope of the contract?

§ 4 Contract term and scope: How long does the contract run? For which regions is it valid?

§ 5 Liability and compensation: Who is liable in cases of damage and, if so, in what amount?

§ 6 Confidentiality, loyalty and duty of secrecy: May the contents of the contract be discussed with others?

§ 7 Data protection provisions: How is the collected data stored?

§ 8 General provisions

§ 9 Contract signatures

Attached:

§ 1 Term of contract: Here you can specify the term of the contract once again and, if necessary, provide information on renewal and termination.

§ 2 Subject matter: This point goes into more detail about the scope of the sponsorship.

§ 3 Payment terms: Here you can list how the sponsor will support you, e.g. with cash or in kind.

§ 4 Implementing regulations: How exactly should the sponsorship take place?

How do I create a sponsorship contract?

When drawing up the sponsorship agreement, you can use common models as a guide. This can also be done without a lawyer. Simply go through each point and add what should be included.

In theory, you do not need a lawyer to draw up a sponsorship agreement. Nevertheless, it is advisable to get legal help. After all, the individual points in the contract should be legally binding. No one is helped if a contract you have drawn up yourself is too imprecise or legally contestable.

A lawyer can check and correct the contract you have drawn up. The financial effort is usually worth it, because the good thing is: Once you have drawn up a sponsorship agreement, you can always use it as a template for all other sponsors. Only the agreements, the contractual partner and the services need to be changed.

It is important that a sponsorship agreement includes all the sponsor's services and your consideration in detail and precisely.

A term is absolutely necessary. Two or three years are recommended. This allows you to plan for the long term.

Our advice: Send your sponsorship contract to the sponsor in advance via PDF for review. If all points are accepted, the sponsor receives the contract in writing. He then only has to sign it.

This approach builds trust and strengthens your collaborative partnership.

Who has to sign the sponsorship contract?

Like all contracts, the sponsorship agreement must be signed by both contracting parties.

Both persons signing must be authorized to sign, i.e. have "procuration". Otherwise the signature is not valid.

Not every member of your association can sign, but usually only the secretary, treasurer or a member of the board.

Sample sponsorship agreement - incl. PDF download

Very important: You should always have sponsorship contracts legally clarified. There is therefore no exact template. However, you can use a sample sponsorship agreement as a guide.

We always recommend the following approach: Either you contact a contract lawyer right away and ask him to draw up a contract with you. Or you draft a contract and then go through it with a specialist lawyer. This way you are legally on the safe side.

Conclusion: A sponsorship agreement is an important safeguard for both parties and creates more transparency

Legally, the sponsorship contract is not mandatory. Nevertheless, it is advisable for clubs or individual athletes to draw up such a contract when working with sponsors. This creates security for both sides and helps you plan your finances.