Sponsorship in sport has evolved far beyond logos on shirts and pitch-side banners. It’s now a strategic partnership where visibility, brand alignment, and measurable returns are critical to success.
Whether you're a business looking to reach new audiences through sport, or a club or event organiser seeking funding, a robust sports sponsorship agreement forms the foundation of your commercial relationship. Clarity, accountability, and foresight are key to avoiding disputes and maximising value.
Below, we explore the key clauses that shape successful sports sponsorship contracts.
What rights are being sponsored?
You'd be surprised how often parties run into issues because they didn't specify what's being offered. Are we talking about shirt sponsorship only? Or does the deal include naming rights, digital content, and VIP tickets, too? Both sides should know precisely what's in the package. That means detailing rights in plain English, not vague phrases such as "promotional activity". It's worth listing these rights clearly in a schedule so everyone is on the same page.
Brand protection and reputation management
Why “Morality Clauses” matter in sport
A key risk in sports sponsorship is reputational damage, either from the sponsor’s use of the brand or misconduct by the athlete or club.
These concerns make it vital to include clear clauses covering:
- Brand usage permissions
- Approval processes for materials
- What happens if reputational issues arise (e.g., “morality clauses”)
Both parties should protect their reputations with provisions that outline what’s acceptable and what happens if something goes wrong.
Exclusivity: Avoiding overlap and ambiguity
Another common area of disputes in sponsorship agreements is exclusivity. For example, imagine we are dealing with a client who is a sportswear brand sponsoring a football club. You'd want to ensure no other sportswear company can advertise their logo at the same stadium or on the players' kits. But this must be clearly defined in the contract - does the exclusivity cover just football boots? Training gear? Official replica shirts? Or all sports clothing and equipment? If the scope isn't set out correctly, it can easily lead to misunderstandings and conflicts down the line. We always recommend tightly drafted wording that avoids grey areas and keeps everyone comfortable about what they can and can't do during the term.
Deliverables and performance obligations
What happens if the banners never go up?
Sponsorships work best when both sides are active. Sponsors want visibility and engagement, and rights-holders must deliver. But what happens if the posts aren't published or the matchday banners never go up?
Agreements should set out practical commitments, not just in theory, but in day-to-day deliverables such as:
- Minimum social media posts
- Matchday exposure (e.g., banners, big screens)
- Timelines for approvals
- Key performance indicators (KPIs) tied to engagement
Clearly documented obligations help both parties stay aligned and accountable.
Termination and exit planning
Every good contract plans for what happens if the relationship ends.
Termination might arise due to:
- Payment issues
- Failure to deliver obligations
- Reputational damage
Including a structured termination clause ensures the exit process is fair, timely, and clear. Consider details like:
- Timeframes for removing branding
- Settling outstanding payments
- Ceasing promotions or media campaigns
Why a well-drafted sports sponsorship agreement matters
Sponsorship in sports is a powerful tool. When done right, it builds visibility, unlocks new audiences, and can deliver long-term value. However, the foundation of every successful sponsorship deal is a well-structured agreement that reflects the reality of the relationship.
At Wright Hassall, our Commercial team has extensive experience advising both sponsors and rights-holders - from national sports organisations to emerging brands and local clubs.
Need help with a sports sponsorship agreement?
Whether you're looking to draft a new sponsorship agreement or review an existing one, we can help ensure your contract supports your goals while minimising risk.
Contact our Commercial team today for expert guidance on sports sponsorship deals that deliver.
The information provided in this article is provided for general information purposes only, and does not provide definitive advice. It does not amount to legal or other professional advice and so you should not rely on any information contained here as if it were such advice.
Wright Hassall does not accept any responsibility for any loss which may arise from reliance on any information published here. Definitive advice can only be given with full knowledge of all relevant facts. If you need such advice please contact a member of our professional staff.
The information published across our Knowledge Base is correct at the time of going to press.
