For example, if sporting events are postponed or temporarily suspended, sponsors – either a team, an event or an athlete – lose the exposure for which they negotiated, which is thwarting the purpose of the contract. However, it should not be forgotten that sports sponsorship is much more than brand visibility and that the cancellation of events or competitions (or their hosting without a public) affects certain rights of the sponsorship itself (for example. B the commitment of the fans). Similarly, many sponsors are active in sports sponsorship as an inclusion tool to build customer loyalty or attract new customers – actions that, under the current scenario, will disappear completely and most likely remain inactive in the short to medium term, as we are witnessing the full consequences of Covid-19. It is a good business practice to create a sponsorship policy within the organization before applying for sponsorship. This will help clarify expectations for sponsorship agreements, particularly for members. Identifying in politics: 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. In this landscape, a rights holder will always be interested in entering into new contracts and safeguarding future revenue streams. A sponsor will strive to protect its investment and ensure that it can use sponsorship opportunities with the confidence that the risks associated with the coronavirus pandemic will be adequately managed to provide optimal value for money. To do so, parties need to consider more creative contractual measures to regulate the agreement and structure operations so that they are agile and safer.
So far, sponsors have patiently and tacitly requested discounts or refunds of sponsorship funds from their sponsors. However, it is only a matter of time before such requirements are put on the table and, therefore, commercial and legal discussions begin. From a legal point of view, Spanish contract law (civil law) offers the sponsor mechanisms for adapting the financial terms of the sponsorship contract, which could range from moderation of sponsorship fees to early termination of the contract. In other countries, such as the United States or the United Kingdom (common law), the scope of the concept of force majeure and court jurisprudence is essential. Regardless of jurisdiction or country, it is necessary to review the sponsorship agreement and understand the spirit of such an agreement in order to assess a successful potential claim of the sponsor or to defend the sponsor against the claims. The essence of a successful sports sponsorship relationship is that the sponsor knows what to expect and the rights holder is aware of what to do. It is essential to achieve this both at the negotiating stage and in the contractual phase. Regardless of the country, sport or size of the competition (national or international), the last three months have seen a continuous postponement of temporary postponements or total cancellations of leagues, competitions and other events.