Sponsorship Agreement Morals Clause

Another important issue that should be addressed and recalled in a written agreement is the right of the brand to use the image and name of the celebrity in relation to its product. This includes both during the sponsorship term and how things would unfold after existing support expires. For a sponsorship brand, an athlete`s scandal or controversy can represent both a commercial and legal issue. From a business perspective, the advertiser must decide whether the situation is potentially negative with respect to the trademark to justify the suspension or termination of the relationship. If this is the case, the investor must decide, from a legal point of view, whether he has the right to suspend or terminate the relationship under the sponsorship contract. In these situations, where millions of dollars and the core values of the brand are potentially at stake, the moral clause becomes the most studied provision of the sponsorship agreement. This article is not intended to serve as legal advice, as a lawyer specializing in this area should be consulted. Some of these clauses have been condensed and/or dealt with for substantive purposes, so none of these clauses should be used to the letter or serve as legal advice or advice. Similarly, the inclusion of a confidential compromise clause in the sponsorship agreement will not involve litigation and public transactions. The implementation of due diligence before the conclusion of a sponsorship is essential. The sponsor must be aware of the risks that sponsorship can entail so as not to be blind. .