Fred Hayden, Chief Executive of Association of Advertisers in Ireland speaking at the ISBA 1995 Conference last week set out the following guidelines:
1. Prepare a formal legal contract if the sponsorship is large scale, involves significant sums of money.
2. If a contract is produced through the professional process of drafting, commenting and agreeing between lawyers, it is more likely that this process will identify and refine the issues which might impinge on the smooth running of the arrangement.
Agreements should contain: – Identity of the parties and capacity to contract – Who does What? Gets What? – Period/Renewal/Extension – Payment – method and frequency – Geographic/Territorial Considerations – Protection of Rights and Property – Title of Event and Publicity – Dispute Resolution
It is important that each party should be clearly identified and by name. For example, in a situation where a group of companies is involved, the company operating the sponsorship should be stated clearly as well as brands, products or services, if applicable”, Fred added.
Where multiple sponsorships are involved, the following guidelines should be followed in addition to the adherence of the principles embodied in Article 8 of the ICC Code.
* Each individual sponsor should be made aware of the rights, limits and obligations of all who are party to the sponsorship. * The sponsored party should not accept any new or additional sponsorship arrangement without the prior approval of the existing sponsors. * The sponsored party shall ensure that any intending sponsors are made aware of any arrangements already in place, together with the identity of the parties involved. * The sponsored party should ensure, as far as possible, that there is no area of potential conflict between intending and existing sponsors. * Every effort should be made by the sponsored party to ensure that rival branding does not occur at an event/activity.
Fred finished by saying, “The purpose of sponsorship is to generate goodwill not to spoil it. Sponsorship will not work if either party feels they are “in bondage” to the other. There may well be circumstances where either party might call for an adjustment or cancellation. Agreement should be binding but not crippling”.
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