Sponsorship Agreement Force Majeure

Many issues remain unanswered and the way in which sports sponsorship is concerned is particularly important. Sponsors are an important player in the sports sector in Spain and the United States. Therefore, their decision to act will certainly have an impact on the future of the sports industry in the short to medium term, as these revenues are economically important for events, teams and athletes. 2. Maintenance and Capex. Most sponsorship fees include a certain level of initial installation and subsequent maintenance at the event site, particularly for signage or naming rights. As a result, organizers and sponsors should review their sponsorship agreements to determine (i) what maintenance and investment obligations are, (ii) what authorization requirements may come into effect before these obligations can be met, (iii) which party is responsible for the performance and payment of these commitments (cannot be the same party) ,iv) if there are funding restrictions on the obligations of the party that bears these costs and expenses. and (v) if there are reasons for benefit debt relief, such as the . B cases of force majeure (see below). With respect to COVID-19, the parties` initial intention may be thwarted (at least temporarily), but they may also be favourable to both parties to modify their maintenance and capex obligations to a level suitable for reducing the operation of the event venue. In the short term, a “good faith” negotiation should make both sides relatively happy. If the sponsorship contract is to be terminated or renewed in the near future, for example.

B at the end of the current season (with each party less incentive to compromise); b) if the relationship was already disrupted; or (c) if the sponsor himself may find himself in financial difficulties because of the pandemic and therefore must save where he can, for example, because he knows that his budgets are under pressure, or that they will soon do so. In such a case, the sponsor can be used under contract law by arguing that it is not fully taken into account (by paying the sponsorship fee and obtaining sponsorship rights) – see above. Overall, creativity, flexibility and cooperation in negotiating sponsorship agreements in the context of COVID-19 should be a key element.

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