Sponsorship agreement

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A template agreement to regulate the relationship between a sponsoring party and a sponsored party.

Author: Alasdair Taylor
Updated: 13 January 2023
Length: 11 pages (min.)
Notes: 11 pages (min.)
Format: MS Word (.DOCX)

This sponsorship agreement is designed for use in relation to sponsorship arrangements where a sum of money (whether a lump sum or instalments) is paid in consideration for the provision of some sponsorship-related benefits.

The particular benefits should be defined in the schedule to the agreement. There are optional clauses in the document allowing for the sponsorship benefits to be varied or substituted, providing there is no material loss of value to the sponsor. The sponsorship agreement template also includes an optional sponsor's trade mark licence. This will be required where the sponsor is permitting the other party to use its trade marks in connection with the sponsorship (e.g. on marketing materials).

Although some of the default drafting assumes the sponsorship relates to an event, the document can be used in relation to sponsored events, individuals, teams, projects and locations.

The premium agreement covers the same ground as the standard agreement, with a range of additional clauses covering such matters as: licensing and infringement provisions relating to the organiser's trade marks, confidential information disclosed by one or both parties, and indemnities protecting one or both parties.

Standard version:

  1. Definitions
  2. Term
  3. Sponsorship benefits
  4. Sponsor Trade Marks
  5. Reputation and goodwill
  6. Charges
  7. Payments
  8. Limitations and exclusions of liability
  9. Force Majeure Event
  10. Termination
  11. Effects of termination
  12. Notices
  13. General
  14. Interpretation

Premium version:

  1. Definitions
  2. Term
  3. Sponsorship benefits
  4. Exclusivity
  5. Sponsor Trade Marks
  6. Organiser Trade Marks
  7. Reputation and goodwill
  8. Charges
  9. Payments
  10. Organiser's confidentiality obligations
  11. Sponsor's confidentiality obligations
  12. Warranties
  13. Third party infringement of Sponsor Trade Marks
  14. Third party infringement of Organiser Trade Marks
  15. Indemnities
  16. Limitations and exclusions of liability
  17. Force Majeure Event
  18. Termination
  19. Effects of termination
  20. Notices
  21. Assignment
  22. No waivers
  23. Severability
  24. Third party rights
  25. Variation
  26. Entire agreement
  27. Law and jurisdiction
  28. Interpretation

Under what circumstances can this agreement be terminated?

A fairly standard set of termination provision is included in the document. First, if a party is in breach (or material breach) of the agreement, the other may terminate. This right may be made subject to the party in breach failing to remedy that breach within a defined period following notification of the breach. Second, a party may terminate if the other is bankrupt or insolvent. Third, optionally, if the sponsor does not pay any amount due on time, the other party may be given a right of immediate termination. Fourth, there is an optional right to terminate upon notice. This or something similar should always be included if the term of the agreement is indefinite.

How does this document protect a club if the sponsor's trade marks infringe someone else's IP?

Whilst the sponsorship agreement cannot do anything much about a club's rights vis-a-vis third parties, it does include a warranty from the sponsor that the trade mark do not infringe others' rights, and an indemnity benefiting the club in the event that they do.

How does this agreement protect a sponsor's registered trade marks against misuse?

There are lots of protections in here for registered trade marks. For example, rights to use may be limited to specific purposes (e.g. "promoting the Event") and to specific forms (e.g. "in accordance with any style guide supplied"). In addition, there general obligations not to damage the trade marks or the sponsor's rights therein, and a limited right to withdraw the consent to use the marks.

Does this document allow the sponsored party to assign its rights to another person?

No. Under the suggested wording, neither party may assign its rights under the agreement. This wording is included because sponsorship very often involves an endorsement of another person, and it will often be inappropriate to allow a party to transfer that endorsement elsewhere. That said, it is easy to amend this clause to allow assignments of contractual rights.

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A copy of this sponsorship agreement is included in the following pack:

  • Business pack (the standard version of this document is included in the standard and the premium business versions of the pack)

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