A Company Enters Into A Naming Sponsorship Agreement With A Sport Property Because

The impact of COVID-19 on the sports industry is already widespread and widespread. In professional leagues, their game plans were abruptly suspended, colleges and universities ended their spring season without crowning new champions, and sports facilities of all categories were effectively let over by the crisis. Following an unprecedented and seemingly endless series of event cancellations, organizers and sponsors must now dust off their sponsorship agreements and review some basic provisions. Venue owners will be primarily motivated to reduce their financial commitment to sponsors, while sponsors will focus on achieving a balanced business interest under the original agreement. Although many of these points are often seen as hypothetical concerns for lawyers to come out, they are increasingly relevant (and real). Below are some of the main sponsorship provisions, which should be considered as venue operators who respond to the pandemic of COVID 19 and respond to their sponsors. DISCLAIMER: Due to the universality of this update, the information provided in this update may not be applicable in all situations and should not be done without specific legal advice based on specific situations. 5. Duration and termination. While existing sponsorship agreements are hopefully able to survive Storm COVID 19, organizers and sponsors must consider all potential contractual scenarios, including the possibility of termination.

These considerations should include an assessment of the parties` respective termination rights, the reasons for the breach of contract (for example. B force majeure), damages and remedies in force (including the possible recovery of Capex previously funded by the sponsor) and reputational risks. In addition, related contractual rights, such as exclusivity, extensions and early bargaining rights, could be taken into account in a termination decision, particularly if the remaining term of the contract cannot be of good quality. Finally, existing dispute resolution provisions should be confirmed before a final termination decision is made. 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.