Sponsorship is about business, and sporting organisations must become businesslike in their approach to sponsorship or they will not be successful in achieving their share of sponsorship dollars they might otherwise deserve.  Large sponsors rightfully expect sporting organisations into which they are injecting significant amounts of money, will be obliged contractually to do certain things most sponsors see as a crucial to a sponsorship relationship.  Sporting organisations should have a clear understanding of the basic contractual obligations most sponsors want, and as a result, frame their proposals accordingly.  In doing this, the following issues should be considered when preparing a proposal on behalf of a sporting organisation:

You should be clear on how much the sponsorship will cost the sponsor and over what period of time;

You should consider the type of exposure you can offer the sponsor, bearing in mind your obligation to other sponsors or organisations (such as your State or National peak body) and any obligations your individual players have committed themselves to.  For example, if your highest profile player has already legitimately committed himself to wear sports clothing manufactured by a competitor of the sponsor the basis of your proposal must be crafted to deal with these types of issues;

Can you offer the sponsor exclusivity?  Can all your players use and promote only the products provided by the sponsor and do you have the contractual right to enforce your players or representatives to do this?

Do you have the control over the rights to signage over the venues, at which your representatives play, or do these rights remain with the owner of the venue or some other party?

How quickly can you implement your obligations to the sponsor?  In most cases sponsors won't consider the sponsorship of an event if the event is less than 6 months away because they will not have time to consider the sponsorship, organise any resources needed or to establish a relationship with the organisation;

What level of control are you prepared to offer (or can  you offer) the sponsor over your team's uniform?  You should always bear in mind the restrictions that may be imposed by your peak body over the size and nature of advertising allowed on uniforms;

Are you prepared to or are you able to offer the sponsor Internet and/or TV rights;

You should make the sponsor aware of your contractual obligations to other sponsors and set out how the sponsors rights will fit into and be compatible with these other sponsorships.

You could offer the sponsor an obligation on your part to keep the financial aspects of the arrangement between the organisation and the sponsor confidential or you could offer to the sponsor a number of warranties in relation to your organisation's ability to enter into a sponsorship agreement and your ability to fulfil your obligations under the agreement.

If you can offer a sponsor a proposal that already answers a number of questions they would normally ask, you will gain an advantage over others who don't.  The benefits for understanding your contractual obligations in advance will help you do this.

Ian Scott is the Managing Director of Professional Sports Management and a consultant to Jones King Lawyers in Brisbane, Queensland on matters relating to Sports Law. His experience as a sports lawyer includes advising various sporting groups and individuals, as well as lobby groups on management related issues,  Ian is accredited with the AFL Players Association as an Accredited Players Agent and the National Basketball League as a NBL Players Agent and an approved Soccer Players Agent under Article 1 of the FIFA Players' Agents Regulations.
                                                                    Summer 1998

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