Seminar 2 – Sponsorship Contracts

Question 1

What are boiler point contract clauses?

Answer 1

These are standard clauses that can be found majority of contracts and governs.

Question 2

What are examples of boilerplate clauses?

Answer 2

• Force majeure
• Notices
• Severance -right to take out clauses that are unlawful
• Entire Agreement -ensures agreement in one location
• Law and jurisdiction or Arbitration -location

Question 3

What are some examples of rights granted to sponsors? and obligations to be taken by event sponsor?

Answer 3

• Right to advertise – venue-based advertising
• Intellectual property rights – use of trademarks (names, logos) and copyrighted materials
• Right to use photos & audio-visuals of the Games
• Right to access to database of the event organizer (memberships, participants

The obligations to be undertaken by the event organizer:
Clean stadia/Venue
Good title to the rights being granted

Question 4

What are warranties in a sponsorship contract?

Answer 4

These are explicit obligations under the contracts and constitutes an express term, i.e breach leads to termination

Question 5

What are some examples of warranties in a sponsorship contract?

Answer 5

• The event organizer free and able to grant particular sponsorship rights
• The event will be held on agreed date and at the agreed venue
• If there is broadcasting arrangement, warranty related to minimum coverage of the event
• If you want to restrict number of sponsorship, warranty related to the maximum number of sponsors

Question 6

What are some financial terms and conditions?

Answer 6

• Sponsorship fee

* Payment terms (lump sum or installments)

Question 7

What are some event cancellation clauses?

Answer 7

• Contingency arrangements
• Provisions related to suspension and/or reduction of sponsorship fee
• Force Majeure (FA Contract, Clause 7 and 6.5)
• Possible termination clause (FA Contract, Clause 5)

Question 8

In the case of a competitor also seeking sponsorship what are Product Category Exclusivity clauses?

Answer 8

The event organiser undertaking to not grant any sponsorship to competitors.

Question 9

In the case of a competitor also seeking sponsorship: what clauses relate to territorial exclusivity?

Answer 9

The event organizer’s undertaking to not to grant any sponsorship in specific territory

Question 10

What clauses relate to fee-based agreements depending on the type of sponsorship?

Answer 10

Sponsorship fee is agreed and payable

Question 11

What clauses relate to Payment in-kind agreements depending on the type of sponsorship?

Answer 11

• Alternative structures for considerations
• Provide the event organizer with a non-monetary benefit
• Sponsor is designated as “official drink sponsor of….”