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:

  • With the accurate and professional creation of contractual framework and with providing safeguards we manage the risks of media appearances as much as possible.
  • If we define the market value, we take the responsibility for the method of the validation as well as for the market value. As a result, our client should not incur any kind of liability, be it civil or criminal.
  • We represent the market, legal and taxation background so our client can have more time and energy to make professional decisions related to sport.
  • We are in daily contact with a sports manager office as well as with an auditor in order to provide professional work.
  • When reviewing the legal framework, we take into consideration the legislation, the customs as well as the interests of our client.