This is often an undervalued area of the agreement, especially by both the athlete and the sponsor. It can often be considered a boring legal part, but it deserves careful consideration. There are three main possibilities for renewing a contract: pre-emption rights, extensions or pre-negotiation rights. An obvious but essential area of the agreement to be examined is the financial utility for both the sponsor and the athlete. Financial issues, such as the cost of the sponsorship agreement, the method of payment, the basis for determining the amount (for example. B salary, commission or both), the number of payments, the payment period as well as the tax debt and its effects should all be resolved at an early stage of the agreement. Your payments may also depend on your sports results for the duration of the contract. The sponsorship agreement should indicate this in an attached calendar. In addition, you can get bonuses according to: sponsorship agreements regarding MotoGP and motorsport in general do not differ from traditional sports sponsorship contracts, both in terms of form and overall content. Of course, each discipline has its own specificities that should reflect the agreement. In the motorcycle world championship, for example, the correct installation of motorcycle logos, uniforms, boxes, trucks, etc. plays a central role.
For this reason, any support intended to be distorted is clearly defined in the agreement, as well as the dimension of the logo of each sponsor, indicated in square centimeters. All this information is collected in the graphic annexes, which are an extremely important part of the agreement, in the form of drawings that visually support the content of the agreement. There are an ever-increasing number of governance codes that athletes must follow. It is important that these codes are not overlooked when developing a sponsorship contract. An error in these rules may lead to the annulment of the agreement or to a lengthy dispute with the management body. When an athlete and sponsor negotiate a sponsorship agreement, there are six key aspects to cover. Here are some fundamental recommendations regarding the well-being of the athlete and sponsor. They must also take into account the duration of the agreement and whether it is in progress or automatically renewable. For example, you want to make sure that you have the right to terminate the contract if the sponsor is an unusual point of disagreement, but one that should be taken into account when entering into the contract. The assignment comes into effect when a sponsor enters into an agreement with an athlete and the sponsor merges or is taken over by another company. The question that arises here is whether the athlete will remain liable to the new company, in accordance with the terms of the contract. Another aspect that deserves to be taken into consideration is the athlete(s) involved in the sponsorship, as the latter is not necessarily the whole team.
Often, companies choose to have their logo on one driver and not on both, as the other driver in the team may already have one or more sponsors. In these cases, the sponsorship agreement explicitly states on paper which athletes are involved and it is explained whether the sponsorship also concerns the runner`s staff and part of the box. In any sponsorship agreement, it is essential that the parties clearly define the volume of licensed goods or services to be encouraged. The product definition is essential for determining other factors that make up the contract, such as the determination of exclusivity (which will be discussed in detail later), categories or types of advertising, and non-compete issues. In theory, extension agreements may seem like the simplest approach, but it may be different in practice. renewals generally involve minimal changes to the original agreement; However, if important elements that need to be re-examined, such as payment structures, contract duration and other tacit obligations under the treaty, are not renegotiated, this can lead to unnecessary litigation. . . .