Sponsoring includes in particular the image cultivation of the sponsor and the communication of an advertising message.
In a sponsorship agreement, the sponsor (e.g. a company in the sporting goods industry) undertakes to pay the sponsorship recipient (e.g. an athlete, artist, etc.) a one-time or recurring consideration. This consideration can be either in cash, in kind or a service provided by the sponsor. Furthermore, the sponsor integrates the sponsorship recipient into his communication or advertising strategy (e.g. by obliging the sponsorship recipient to use the sponsor’s brands). The sponsorship recipient, usually an athlete or an artist, is contractually obliged to carry out a sponsorship-related activity (e.g. a particular sport). In doing so, the sponsorship recipient should enable the sponsor to carry out advertising activities with their help.
The sponsorship agreement is a so-called innominate contract, i.e. a type of contract which is not expressly governed by law. It can contain, among other things, elements of the law of agency, sales agreement and contracts for work and services, as well as elements of labour law.