Why use a sponsorship / Brand ambassador contract
Aria Grace Law | 1 March 2024 | 5 min read
Aria Grace Law | 1 March 2024 | 5 min read
Equestrian sport has benefited from some amazing sponsorship arrangements over the years and continues to do so – with thanks to Longines, Rolex, Mars, and many others for their longstanding support at the highest levels. In recent years, there has also been an explosion in collaborations between brands and riders of all levels, working together to increase exposure both in person and online – primarily through social media platforms – to reach a wider group of potential consumers.Sponsorship and the use of brand ambassadors can create relationships with great synergy; however, at its core, it remains a commercial arrangement from which both parties must derive value. Equally, any use of media in connection with equestrian sport needs to be considered from a bystander’s perspective, as the social licence to operate for the sport is continually under scrutiny. Ensuring that the deal is properly documented from the outset can define and protect the commercial value, guide expectations within the relationship, and, if necessary, allow either sponsor or rider to exit the arrangement professionally if circumstances change.
The use of imagery – both photos and videos – is extremely powerful on social media. However, both brands and riders must ensure they have the appropriate commercial licences for any content used. Equally, some riders may wish to preserve the rights to their image to maintain control over their personal brand and public presence.
The Advertising Standards Authority (ASA) has issued guidance for influencers promoting brands via social media, which all sponsored riders must adhere to. The guidance clarifies that advertisements must be clearly identifiable as such. Even where no money changes hands, the provision of discounted products or other benefits in return for online promotion is regarded as advertising and must comply with the CAP Code and ASA expectations.
A key component of any commercial partnership is exclusivity. For a sponsor, it is critical to ensure that a rider is not simultaneously promoting competing products or services. Additionally, being part of a curated team of sponsored riders enhances brand credibility and strengthens the sponsor’s bargaining power when negotiating sponsored roles.
Where a rider has a particularly high profile or a sponsor is aiming for a specific commercial outcome, it may be appropriate to link rider benefits to achieving defined targets. This strategy enables the sponsor to direct their marketing budget more effectively and allows successful riders to capitalise on their achievements in competition or public engagement.
It is wise to address at the outset how the sponsor and rider will manage significant changes during the sponsorship term. Situations such as a serious injury to horse or rider, or the sale of a top-performing horse, may necessitate a change in focus, a reduction in sponsorship, or even termination of the agreement if the rider can no longer fulfil the promotional role. Similarly, should a brand face reputational or financial difficulties, the rider may wish to suspend or renegotiate the terms of the relationship.
While both sponsors and riders enter into agreements with the hope of a productive, mutually beneficial outcome, this cannot always be guaranteed. Within the industry, there is (rightly) zero tolerance for any suggestion of horse abuse or unethical conduct. A sponsor should therefore secure clear termination rights in the event of allegations of abuse or other serious misconduct by a rider. Promoting a rider publicly effectively endorses them, and their behaviour must reflect the sponsor’s values, both in and out of the saddle.Conversely, if a sponsor fails to meet their obligations or encounters significant financial issues, the rider may wish to seek new opportunities without being bound by exclusivity clauses.
Although a bespoke sponsorship contract might seem like an unnecessary expense, it is essential to ensure that your contract reflects the specifics of your relationship – whether you’re a sponsor or a rider – and that both parties have a clear understanding of the “rules of the game” from the outset.The long-term benefits of strong, well-managed sponsor–rider relationships are evident. Demonstrating that a rider can deliver sustained value to a sponsor also makes them a more attractive prospect for future partnerships with other brands.Any initiative that helps to positively promote equestrian sport in mainstream media is valuable – both to the individuals involved and to the sport more broadly. However, it is vital that such promotion is undertaken responsibly, appropriately, and in full compliance with relevant laws and regulations, to safeguard the reputation and longevity of equestrian sport as a whole.
Jodie Seddon, Partner,
March 2024
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