Sponsorship Agreement

Sponsorship Agreement: Agree Clear Terms With Your Sponsor

A sponsorship agreement is a contract between a sponsor and the person or organisation it sponsors, such as an athlete, team, event, charity, festival or production. It records what the sponsor provides, whether money, products or services, and what it gets in return, from logo placement and naming rights to hospitality and social media posts. Robot Lawyer drafts the agreement from your answers, under the law of the country or state you choose. On the Verified plan, a legal professional checks it before you sign.

CONTENTS

What Is a Sponsorship Agreement?

Sponsorship is a commercial deal, not a donation. The sponsor pays or provides support in exchange for exposure and association with the sponsee's name, audience or event. Because both sides are giving something, the agreement needs to be specific: which events or seasons are covered, exactly how the sponsor's brand will be shown, what the sponsee must do, and what happens if either side doesn't deliver.

A written agreement also protects reputations. Sponsors want to be able to walk away if the sponsee's conduct damages their brand, and sponsees want to make sure the sponsor's branding is used properly and that they are paid on time.

When Do You Need One?

• Sports
  Shirt, kit, stadium or event sponsorship for a club, league, team or individual athlete.
• Events and conferences
  Headline, category or stand sponsorship for a festival, conference, exhibition or awards evening.
• Charities and community projects
  A business supports a charity, school or community group in return for recognition.
• Arts and media
  Sponsorship of a film, production, exhibition, musician or band.
• Product and in-kind deals
  The sponsor supplies products, equipment, technology or services instead of, or as well as, cash.

What's Included in Your Agreement?

• The parties and the sponsorship
  The sponsor, the sponsee and the events, activities or seasons covered.
• What the sponsor provides
  Cash, products, services or other support, with the value and payment schedule.
• Sponsor benefits
  Logo placement, naming rights, advertising space, hospitality, speaking slots, content and reporting, as chosen.
• Branding and approvals
  How and where the sponsor's name and logo are used, with a licence to use them and the sponsor's approval of materials.
• Sponsee obligations
  What the sponsee must do to promote the sponsor and any performance targets.
• Exclusivity
  Whether the sponsee can accept sponsorship from the sponsor's competitors.
• Term and termination
  Start and end dates, and the right to end the agreement for breach, insolvency or conduct that damages reputation.
• Cancellation
  What happens to payments if an event is cancelled or postponed.
• Liability and governing law
  Limits on liability and which law applies.

Exclusivity and Brand Protection

Exclusivity is often what makes a sponsorship valuable. A category exclusivity clause, such as "official beer partner", stops the sponsee from taking money from the sponsor's direct competitors during the term. It should be clearly defined, because a vague category can cause disputes later.

Both parties also need to protect their brands. Your agreement gives each side a limited licence to use the other's name and logo for the sponsorship only, lets the sponsor approve how its branding appears, and allows either side to end the deal if the other's conduct brings it into disrepute.

How It Works on Robot Lawyer

1. Answer the questions
   Tell us about the sponsor, the sponsee, what is provided, the benefits, exclusivity and the dates.
2. Generate your agreement
   We draft a complete, numbered sponsorship agreement under the law you choose.
3. Get it verified
   On the Verified plan, a qualified legal professional checks your agreement within 24 hours and makes amendments where needed. See how our documents are verified.
4. Sign it
   Both parties sign before any branding is used or payments are made.

How It Works in Different Countries

• UK
  Sponsorship marketing must follow the CAP Code, and sponsored social media posts must be clearly labelled as advertising. Alcohol and gambling sponsorship have extra rules, and for a charity, sponsorship income may be treated differently from donations for tax and VAT.
• United States
  Sponsored endorsements must be disclosed under FTC rules. For non-profits, the tax treatment of sponsorship payments can depend on whether the sponsor only gets acknowledgement or also gets advertising.
• Ireland
  Sponsorship marketing follows the ASAI code and consumer protection law, and alcohol sponsorship is restricted, particularly for events aimed at children.
• Canada and Australia
  Advertising standards and consumer laws apply to sponsored content, and both countries restrict some sponsorship, such as tobacco.

These notes are general. Check the current rules for your industry and the type of sponsee.

Sponsorship Agreement FAQs

What's the difference between sponsorship and a donation?

A donation is a gift with nothing expected in return. Sponsorship is a commercial arrangement where the sponsor gets benefits, such as branding or advertising, in exchange for its support.

Can the sponsor provide products instead of money?

Yes. Your agreement can cover cash, products, equipment, services or a mix, and records the agreed value of each.

What happens if the event is cancelled?

Your agreement sets out whether payments are refunded, carried over to a rescheduled event or partly kept to cover costs already incurred.

Can either side end the agreement early?

Yes, in the circumstances the agreement sets out, such as a serious breach, insolvency or conduct that damages the other side's reputation.

Does a sponsorship need to be disclosed on social media?

Usually, yes. In most countries, sponsored posts must be clearly marked as advertising, and your agreement requires both sides to follow the advertising rules that apply.

Can I use this agreement outside the UK?

Yes. Your agreement is drafted under the law of the country or state you choose. Our lawyers are qualified in England and Wales and check documents for good practice, clear formatting and the law of England and Wales. They are not qualified in other countries' law, so if your agreement is governed by another country's law, we recommend having a local lawyer check it too.

Create a Sponsorship Agreement

Set out exactly what each side gives and gets. You can start with a 7-day free trial. See our pricing for the plans. Related documents: Service Agreement, Content Licensing Agreement, Consulting Agreement and Non-Disclosure Agreement.