Learn How To Create a Sponsorship Agreement

Standardized Legal Documents Learn How To Create a Sponsorship Agreement

Get Great Backing With a Lucrative Sponsorship Agreement

Sponsorships are win-win deals that help both sides of the agreement.

Sponsors benefit from being identified with the right people, whether they are up-and-coming sports stars, musicians, or influencers.

Sponsees—the recipients of sponsorships—get support, exposure, and sometimes financial incentives out of the deal and can use the sponsorship to further their career or publicize what they are doing.

The key to making a sponsorship work is to make sure the sponsorship agreement is watertight. We understand that not everybody feels comfortable writing contracts or preparing legal documents. DoNotPay can show you how to create a sponsorship agreement that works.

What Is a Sponsorship Agreement?

A sponsorship agreement is a contract between:

  • A sponsor who is prepared to give money, benefits, exposure, or similar
  • A sponsee or rights holder who has something to offer that benefits the sponsor. The rights holder could be a person, a business, or an event

The agreement sets out that the rights holder will perform certain services in return for whatever the sponsor is offering. In many ways, it is a transactional contract similar to an independent contractor agreement, except that no employment relationship exists between the parties.

When Do I Need a Sponsorship Agreement?

Sponsors and rights holders enter into sponsorship agreements for different reasons, as follows:

SponsorSponsors are often looking for:

  • Affiliations that promote their brand or business
  • Advertising reach
  • Lead generation
  • Targeted sales
  • Community goodwill
  • ROI
SponseeRights holders often need:

  • Financial support
  • Equipment or goods
  • Exposure through affiliation with a strong brand
  • Non-financial aid

How Does a Sponsorship Agreement Work?

A sponsorship agreement should contain the following elements to guarantee both parties get what they want out of the deal:

  1. Name and details of each party
  2. Date of commencement of the agreement
  3. Term of the agreement
  4. Right of renewal or first refusal
  5. Fees to be paid by the sponsor
  6. Obligations for the rights holder
  7. Key dates for delivery by the rights holder
  8. Dispute resolution terms
  9. Non-compete stipulations
  10. Governing law

The clearer and more detailed a sponsorship agreement is, the more likely both parties will be happy and willing to extend it. Once you have drawn up the agreement, it should be signed by both parties and notarized to ensure it is legally binding.

Name and Details of Each Party

Each party’s full name, address, and contact details should appear in the agreement.

Date of Commencement of the Agreement

Both parties should agree on when the contract should commence. If the sponsorship is for a one-off event, the date of commencement will normally be the date of the event.

Term of the Agreement

The term clause sets out how long the agreement lasts. If the rights holder is a person receiving sponsorship, this could be weeks, months, or years.

Right of Renewal or First Refusal

The sponsor can insist on a right of renewal of the sponsorship, which means the rights holder may not accept any competing sponsorships until the right of renewal has been waived. As an alternative, the sponsor can ask for the right of first refusal, i.e., the right to be asked for renewal before any other sponsors are approached.

Fees To Be Paid by the Sponsor

The sponsor should set out any amounts that they agree to pay to the rights holder. This remuneration could also be in the form of:

  • Goods
  • Vouchers
  • Services
  • Other benefits in kind

Obligations for the Rights Holder

The sponsor and the rights holder should agree on what the rights holder has to do to fulfill the terms of the agreement. These services may also include:

  • Placement of the sponsor’s logo
  • Social media posts
  • Mentions or endorsements
  • Other activities that promote the sponsor

Key Dates for Delivery by the Rights Holder

Every date and deadline for delivery of the agreed services should be noted.

Dispute Resolution Terms

The agreement should set out the contingency plans for dealing with disputes if they arise. These could include:

  • Meetings
  • Arbitration
  • Legal action

Non-Compete Stipulations

The sponsor may want to insist that the rights holder does not enter into any sponsorship deals with rival or competitive companies during the term of the agreement.

Governing Law

The agreement should define which state’s law is applicable. In most cases, this will be the state where the rights holder is located.

How Can DoNotPay Help Me With a Sponsorship Agreement?

A sponsorship agreement does not need to be a complicated document, and you can draw one up using the guidelines above.

DoNotPay understands that writing legal documents can be difficult, so we offer a range of customizable contract templates and other documents that you can tailor to your needs.

All you need to do to get your customized legal document is:

  1. Navigate to DoNotPay and sign up
  2. Look for the document you need
  3. Fill in the details you want included
  4. Wait while we generate your document

Does DoNotPay Have Any Other Legal Documents?

We have a range of customizable legal documents that is expanding all the time. Here are a few of the ones we offer:




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