Sponsorship is an increasingly popular form of ‘below the line’ advertising. It can be an effective promotional tool for the sponsor and provide essential funding for a project, but balancing the interests of both parties gives rise to many legal pitfalls.
What’s in it for the sponsor?
The main attraction for any sponsor is the opportunity to raise its corporate image or brand profile and enhance its reputation by association with the sponsorship target through a comparatively inexpensive form of media exposure.
What’s in it for the brand owner?
From the perspective of the brand owner, sponsorship is usually viewed as a means of raising finance to support the sponsorship target and, typically where a representative body or sports authority is concerned, may even present an opportunity for the brand owner to bind its members to present the united front it may not otherwise have had.