Our latest venture
We announced our latest sponsorship deal with EFL League One football club, Accrington Stanley in July 2019. We have entered into a two-year deal sponsoring what was the Clayton End stand – now the Farleys Solicitors stand. For those less familiar with the club, Accrington Stanley are a community-based football club with a rich history of amateur and professional football. From humble beginnings in the Conference, to League 2 winners and a threatening presence in League One, we’re proud to support Stanley on their journey.
So, what exactly is a sponsorship deal?
Sponsorship is a popular form of marketing whereby a sponsor provides some form of consideration, usually in the form of money, in return for marketing rights. Like most business ventures, the foundation for the relationship is in a legal contract.
The legal element of a sponsorship deal
Now for the boring part…In law, sponsorship operates as a contract between the sponsoring party, and the party being sponsored. Since the relationship is contractual, the parties undertake specific obligations as set out in the contract, and at the same time gain rights enforceable against the other. Perhaps the most important of these is the right to sue the other party for breach of their primary obligation to perform the contract as set out in its terms. It is therefore essential that obligations are carefully thought through, are clear, and that you are comfortable you can comply with your obligations.
Why seek legal assistance when deciding to conclude a sponsorship deal?
Sponsorship is often high-profile and the effects can be well publicised if things go wrong … and all sorts of things can go wrong. From cancellation of an event due to unforeseen circumstances to one party becoming subject to a scandal which leads the other wanting to terminate the deal.
From choosing a suitable form of consideration, to preventing ambush marketing, sponsorship incorporates issues from across the legal spectrum. First, decide upon the type of sponsorship, and what exactly it is that you are sponsoring. Then, you must negotiate a contract that best accommodates the needs of yourself and the other party. In this contract, parties should consider amongst other things: the term of the agreement, rights of termination and each party’s respective rights and obligations, intellectual property rights, and many other issues. It is important to draft terms that accurately reflect what each party hopes to gain from the arrangement.
For more information on any of these issues, contact Farleys’ commercial team by email or call 0845 287 0939.