Unlocking the Power of Sponsorship Contracts: A Guide for Creative Agencies

While the legalities of any sponsorship contract should never be overlooked, a well-drafted agreement can also be one of the most valuable marketing strategies for any creative agency. When clever and creative marketing solutions are at the heart of an effective promotional campaign, all too often it is the paperwork that gets left at the drawing board. Yet an effective sponsorship deal can automatically give the best-sounding board for a new product or business, and combined with a competitive sponsorship agreement, can be the boost that a client needs. A favorable sponsorship deal instantly elevates the profile of the brand or business in question and opens up new avenues for audience engagement and interaction. Of course, where money changes hands, you also require a contract. A sponsorship contract is a legally binding agreement between two parties, stipulating the terms under which the sponsor must agree to carry out the activities associated with the sponsorship. The first question for any creative agency is what are the benefits of a sponsorship contract? What value could it bring to any marketing campaign that gives it the potential for such a big return on investment? A sponsorship contract benefits both the sponsor and business or brand benefiting from the sponsorship. Fundamentally, it is a simple exchange of service with cause and effect: Naturally, where money is involved, there are many conditions and stipulations that need to be put in place for both parties to feel comfortable that contractual obligations will be upheld. Therefore, the typical terms of any sponsorship contract should include: However, dos and don’ts aside, here are three ways in which you can push the boundaries of creativity to enhance your marketing strategy: The right sponsorship deal can be the difference between valuable brand exposure to the right audiences on the one hand, and a big waste of a client’s marketing budget on the other. However, by keeping the essential terms of any contract at the forefront of your mind, you can navigate the potential pitfalls that threaten any sponsorship deal. So, whether you are planning sponsorship event as part of your marketing campaign or looking to negotiate the key terms of a sponsorship deal – familiarise yourself with the guidelines of a watertight agreement and take full advantage of the marketing opportunities that sponsorship offers both you and your clients alike. And remember, if you’re not sure about the contractual requirements of your next sponsorship deal, or want to ensure that you fully understand the appropriate terms to secure, check out WJ Legal’s full checklist here.