A sponsorship contract is the agreement governing the legal relationship between the sponsor and the individual, a team or event organizer being sponsored. In a sponsorship contract, one of the parties undertakes to provide financing or any other support for the sponsored party’s activities or organization; and the other party undertakes to promote the sponsor by presenting it to its network during the mentioned activity or event.
A. SPORTS SPONSORSHIP CONTRACT
A sport sponsorship contract is a contract whereby the sponsor provides financing or any other support in order to establish an association between the sponsor’s image, brands or product and sponsored athletes, sports clubs, coaches, sports organizations and sports facilities in return for granting of certain direct or indirect benefits and rights.
B. WHAT IS THE LEGAL NATURE OF SPORT SPONSORSHIP CONTRACTS?
A sport sponsorship contract consists of different types of rights and liabilities. As such, there is no fixed legal regime for sports sponsorship contracts. Each contract will have its specificity according to its regulation, legal expectation, rights and liabilities. Hence, sports contracts are synallagmatic contracts, which is comprised of the performance of a continuing obligation. They are also innominate in nature. The main object of sponsor for sport sponsorship contract is promotion and image transfer.
A sport sponsorship contract carry elements of a contract of mandate, a sales contract, a continuous performance contract and a license contract.
C. PARTIES TO A SPORT SPONSORSHIP CONTRACT IN CAMEROON
- Sponsor: This is a natural or a legal person who provides financing, contributions in kind or certain services to athletes, coaches, sports teams or clubs, federations or organization, in return for granting of certain direct or indirect benefits and rights, such as promotion of itself or its products or transfer the other party’s image.
- Sponsored Party: The sponsored party is a natural or legal person requiring financial or other support in order to conduct a sports activity or organize a sports event.
D. THE OBJECTIVE OF A SPORT SPONSORSHIP CONTRACT
FOR THE SPONSOR
- Promotion: The famousness of the sponsor and increase in commercial relations of the business of the sponsor is the principal promotion objective of the sponsor. This is because the sponsor who is the person who makes an investment through a sponsorship contract has as aim to improve recognition of his products or services by ensuring long-term benefit to his business.
- Image Transfer: This is also a major objective of the sport sponsorship contract. The image transfer under the sport sponsorship contract is quite different from the conventional means of communication such as advertisement, public relations and propaganda marketing. If the sponsor has a positive image in public opinion, it is desired to strengthen this image by taking advantage of the positive image of the sponsored party.
- Increase in market share and audience: Another object of the sponsor is to increase engagement with its target audience and to reach a larger target market. The sponsor aims to engage in communication with the sponsored party’s clients, partners or the persons, who participates in the sports activity or organization.
FOR THE SPONSORED PARTY
- Funding: the sponsored party is to provide funding for its sports activities or events. Therefore, a sport sponsorship contract is a means to an end for the sponsored party.
- Promotion: The sponsored party is also promoted under a sport sponsorship contract. The transfer of its image to a prestigious sponsor also brings prestige to the sponsored party.