Commercial Partnerships

Paul Veysey & Jennifer Cottle

Dolmans Solicitors

Introduction

• What is a commercial partnership?

• Sponsorship

• Potential partners

• Potential benefits

• Key considerations

Introduction (cont’d)

• Ethical considerations

• Legal considerations

• Case study

• Practical considerations

• Discussion points

What is a commercial partnership?

A commercial partnership is when an association entersinto an arrangement with a commercial companyintending to:-

a) generate money for the association; and/or

b) receive a benefit in kind for the association; and/or

c) raise awareness of the association.

What is a commercial partnership? (cont’d)

For sports organisations, commercialpartnerships can be based on sponsorshipagreements whereby commercial companiespay for the right to be associatedwith valuable assets owned by thecharity/association such as national teams orevents

Sponsorship

• Sponsorship is a form of marketing

• A sponsor contributes funds, products orservices to an event organiser, rights owner,producer of an entertainment product,participants, teams or individuals

Sponsorship (cont’d)

• In the majority of cases this will be in return for marketingrights entitling the sponsor to promote its image and productsin connection with the event or individuals concerned.

• A commercial partnership can go further to encompass the establishment of a working relationship between sporting bodies and providers of services and/or goods.

Does your organisation have sponsorship arrangements or commercial partnerships in place?

Potential partners• Professional advisers e.g. lawyers, accountants, PR

specialists

• Events organisers

• Kit/clothing/equipment suppliers

• Venue managers/owners

• Vehicle providers

• Others?

Who are your potential partners?

Potential benefits

• Raising money

• Expert advice if partner is a professional adviser (e.g. solicitor, accountant)

• Obtaining goods at a reduced/cost price

• Profile raising

What benefits do you envisage?

Key considerations

• Target market

• What are the parties’ objectives?

• Will the partnership assist the parties in achieving those objectives?

• Will the partner commit to the NGBs overall strategy?

• Timescales – for how long will the partnership exist?

Key consideration (cont’d)

• Will the partner expect any control over the athletes or event participants?

• What costs will be involved?

What key considerations would your organisation wish to consider?

Ethical considerations

• What goods/services does the partner sell?

• Any bad publicity?

• Does the partner comply with legal requirements (e.g. health & safety legislation, data protection, employment law)?

• Is there a conflict of interest? What ethical considerations would you or your

members want to take into account?

Legal considerations

• Written agreement including indemnities

• Formal retainer with professional partner –this should reflect the agreed terms

• Intellectual Property Rights (IPR)

• Brand protection

Disability Sport Wales (DSW) & Dolmans Solicitors

• Legal adviser for 10 years• Jennifer Cottle – board member since 2011• Business in the Community, Wales Responsible Business

Awards - Employee Volunteer Award 2014• Benefits:

– profile-raising and publicity for both parties– financial savings, leading to increased funds being available for

front-line community and athlete programmes– assisting DSW to establish new relationships with commercial

partners

Example

• Self assessment of your value

• Programmes divided into three strands

1. Grass roots

2. Academies

3. Elite athletes

• Each strand “sold off” to commercial partner for a fee

q What can your organisation “sell”?

Practical considerations

• How will you source your commercial partners?

• How will performance of the partnership be measured?

• Who will be the partnership “team”?

• Who will take responsibility for which aspect?

Discussion points

• Have you encountered any issues with any commercial partnerships your organisation has in place?

• Do you think commercial partnerships are worthwhile?

• Case study

Thank youPaul VeyseyPartner

paulv@dolmans.co.uk

Jennifer CottleAssociate

jenniferc@dolmans.co.uk

Dolmans Solicitors

One Kingsway

Cardiff

CF10 3DS