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Due Diligence
There is hardly any sponsor who would pour money into a bottomless pit. Sponsors should bear in mind what they support and with how much money. This way they can trigger the utilisation of the money and indirectly they can also contribute to the success of the sponsored. It makes a difference if the player’s value is based on a statement, or it is preceded by professional validation. There may be significant differences if a coach or staff member has an employment relationship with the club or if he/she works under an assignment contract. Both underselling and overpricing can be considered as a professional mistake and in some cases it is even a criminal act. This risk can be avoided with professional expertise. On one hand, market logic is essential (“how much they pay for the sportsman”) on the other, however, many taxation, strategic, sports professional and legal aspects may also arise. A sports law expert can deal with such negotiations and inspections in a much more orderly fashion.
Apart from validation, it is also worth focusing on the risks of different legal structures. Who wants to support an organization or an association where money should be spent on fines and structural recoveries? In this context regulations and their relationship to each other may require legal expertise as well as the investigation of liabilities stipulated in contracts or sets of contracts.
How we support our clients:
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Development of standards related to media appearances
As a result of digitalization, sponsorship appearances have gone beyond the framework of traditional media. There are several new communication channels, and with the expansion of advertising platforms, possibilities and threats also have a broadening spectrum. Related content expectations should be handled more consistently and in an integrated manner. Platforms are used by many but only a few use them professionally. It is a basic requirement to protect the sponsor’s brand image. This should be done by setting conditions regarding the behaviour of the sponsored and by presenting image elements professionally. Conditions are also set for joint appearances with other sponsors. Fixing such rules requires the co-operation of a professional. In addition, restrictions on mediating and broadcasting rights may affect the rights of the sponsor. Commitments of the sponsored do not necessarily match reality. It is better to investigate the situation in advance preventing a problem than to confront afterwards due to an unfulfilled commitment.
How we support our clients:
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Legal document drafting
It is usually easy to write down what a sportsman, his club or an association receives from a sponsor. But if the liabilities compensating the sponsorship are not well-defined or if their accounting is not adequately ensured, it can result in a serious conflict between the parties and can significantly reduce the quality of the sponsor’s campaign. It is often the sponsored who does not know what and in what framework he/she can undertake. He is certainly bound by previous contracts or binding guidelines. Once these documents are available and professionally used, a long-term and stable relationship between the contracting parties can be ensured.
How we support our clients:
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Contact
Services For Sportsmen For Associations For Sponsors
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