Sponsorship agreement lawyer
Contracts as the foundation of your sporting career
A sponsorship agreement is a reciprocal agreement whereby one party (the sponsor) associates its name with that of another party (the sponsored party) in exchange for consideration, usually money, products or services.
In practice, sponsorship agreements are often concluded too lightly: verbally, without concrete arrangements on duration, obligations or the consequences of breach of contract. Everest Sports Law helps you secure your interests contractually and enforce your rights whenever necessary.
Free consultationWhat a sponsorship agreement lawyer does for you
Drafting & negotiation
Everest Sports Law drafts tailor-made sponsorship agreements, or reviews contracts you received from a counterparty. We safeguard your interests in every clause: fees, payment terms, exclusivity arrangements, advertising space, duration and termination conditions.
Non-payment & breach of contract
When a sponsor fails to meet its financial obligations, or when a sponsored party fails to deliver the agreed performance, Everest Sports Law takes action. We send formal notices, conduct amicable negotiations and initiate court proceedings when necessary.
Reputational damage & image clauses
Sponsorship agreements increasingly contain so-called morality clauses or image clauses, under which a sponsor may terminate the contract in the event of scandal or reputational damage. We advise athletes and clubs on the scope of such clauses and assist you in disputes.
Tax & legal qualification
Sponsorship income is taxable when it derives from a professional activity, whether in cash or in kind. The legal qualification of the agreement (service contract, contract for works, employment contract) has significant consequences for VAT, payroll withholding tax and social security contributions.
The clauses that decide what a sponsorship is worth
A sponsorship contract is short to read and long to live with. These four clauses cause most of the disputes.
Term, renewal and exit
Set out how long the agreement runs, whether it renews by itself, and how each party can bring it to an end. An agreement that renews silently and can only be terminated months in advance can tie you to a brand you would rather leave. Agree what happens to material already produced, and to payments already invoiced, once the co-operation stops.
Exclusivity and competing brands
Exclusivity is what a sponsor really pays for, so define it precisely. Name the product categories, the territory and the period, and state whether the exclusivity also covers your club, your team and your national federation. An athlete can be bound by federation obligations towards a team sponsor that conflict with a personal deal, so check both before you sign either.
Performance, selection and injury
Fees are often tied to results, to selection or to a number of appearances. Write down what happens when an injury, a suspension or a non-selection makes those conditions impossible. Without such a clause the sponsor can suspend payment while your obligations continue, which is the least comfortable position to negotiate from.
Name, image and what survives the contract
A sponsor buys the right to use your name and your image within agreed limits. Record which images, for which channels, for which markets and for how long, and state clearly that the use ends when the contract does. Where a name or a logo is registered as a trademark, the register of the Benelux Office for Intellectual Property shows who holds the rights before you promise them to anyone. Registering the mark yourself, before a sponsor registers it for you, keeps that decision in your own hands.
Frequently asked questions
What has to be in a sponsorship agreement?
What each party actually delivers. Set out which logos appear on which carriers, how many mentions, how many events and which rights on social media. Set out just as precisely the amount, the payment dates and the goods or services. A description such as visibility at matches is too vague to enforce.
How do I arrange exclusivity with a sponsor?
Name the product categories, the territory and the period, and state whether the exclusivity also covers your club, your team and your national federation. Check whether the regulations of your federation or of the competition already claim certain categories or certain places on the kit. An athlete can be bound by federation obligations that conflict with a personal deal.
What happens to the contract on relegation or a long injury?
Only what you set down yourself. Deal expressly with relegation, a long injury, a suspension and the loss of a competition. Work with a reduction or an extension rather than immediate termination, so that one bad season does not bring the whole agreement to an end.
Can a sponsor terminate for reputational damage?
Only where the contract allows it, and then within the limits it sets. Define which facts the clause covers and who assesses them, otherwise it becomes a lever. Settle as well whether sums already paid must be returned and how the running communication is wound down.
Is VAT due on sponsorship?
Sponsorship is as a rule a service with something given in return, and therefore subject to VAT, unlike a gift. Set the amounts exclusive of VAT and state the VAT treatment expressly in the contract. That prevents an argument over who bears the tax once the first invoice has gone out.
Sports we handle this domain in
Cycling ↗
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Athletics ↗
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