Sponsors are visible throughout event arenas in the form of logos and products such as food. Whether you're the sponsor or the promoter, find out how to prepare a sponsorship agreement so that your company is properly protected.
updated November 24, 2023 · 3min read
If you've ever watched a baseball game, you've undoubtedly seen numerous corporate logos throughout the ballpark, both throughout the arena and even as the name of the stadium itself. These logos are just one example of corporate sponsorship, which is also known as event marketing or cause marketing, particularly when a charity or nonprofit organization is involved.
Sponsorship is a marketing tool that, when properly conducted, connects a particular team with a specific product in the mind of the public. For example, when you think of the NFL, you might think of a particular brand of beer or soda. Sponsorship works well because the sponsor helps the promoting organization, or sponsee, pay the high cost of maintaining venues and paying player's salaries. In turn, the sponsor benefits by gaining exposure and, possibly, loyalty from spectators.
Promotion of the sponsors' logos isn't the same as advertising, although the logos certainly help publicize the companies' products or services. Instead, a sponsor enjoys a more important relationship with the promoting organization in that it pays top dollar in exchange for promoting its own product, improving its image, and creating public awareness of its brand.
For businesses of any size, sponsorship makes sense if you can align your product to an event that matches your demographic. In addition to sporting events, sponsors are also found at concerts, fundraisers, and other types of events. An example of sponsorship that works well is promoting a brand of hot dogs at a baseball game. Not only are hot dogs associated with baseball, but fans are likely to grill hot dogs at tailgates or home viewing parties.
Whether you're the sponsor or sponsee, you should put your sponsorship agreement in writing to protect yourself in case there's a dispute.
Each sponsorship agreement differs depending on the product that's promoted, but there is basic language that each agreement should contain. Some of the most important information to include is:
If your company wants to become a sponsor or bring a sponsor on board, you can do so by creating your own sponsorship agreement. There is other information you can include, but the above are the most basic clauses in such a contract. To ensure your agreement contains the proper language, you can have an online service provider prepare a comprehensive sponsorship agreement for you.
by Ronna L. DeLoe, Esq.
Ronna L. DeLoe is a freelance writer and a published author who has written hundreds of legal articles. She does...
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