What is a sponsorship agreement?

Sports sponsorship contract pdf

In our legal system, the sponsorship contract is characterized because it is not properly a service contract and falls within the scope of private contracts, in which there is a commitment by the sponsored party to collaborate in the sponsor’s advertising, carried out by a natural or legal person who is engaged in an activity other than advertising, not an advertising professional (advertising agency, advertising media, creative).

Note that the LCSP 2017 follows the scheme of previous regulatory texts applicable in administrative procurement when distinguishing between an administrative contract and the figure of the agreement.

Therefore, if the third party performs a performance to the City Council in exchange for an economic consideration, we will be dealing with a contract, never with a collaboration agreement, which implies that, in the absence of data made available to us in the consultation, we understand that we are dealing with a contract if the third party receives remuneration for the realization or participation in the event.

What are sponsorship agreements?

We can define it as a contract in which the sponsored party, in exchange for financial support for the realization of its sporting, charitable, cultural, scientific or other activity, undertakes to collaborate in the sponsor’s advertising.

Who is the sponsor in a sponsorship agreement?

The sponsorship contract is an agreement in which a natural or legal person, called the sponsored party, in exchange for a contribution that may be in kind, in cash or both, agrees to collaborate in the advertising of a product or service of a legal or natural person called the sponsor.

How much is sports sponsorship tax deductible?

Patronage, regulated in Law 49/2002 on the tax regime for non-profit entities -also known as the Patronage Law-, allows a 35% deduction of the amount of the donation in the IS, with a maximum deduction of 10% of the taxable base of the tax.

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Advertising sponsorship contract

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What is a sponsor in advertising?

Sponsorship is an advertising strategy in which an organization (sponsor) commits to provide funding to a third party (sponsored) in exchange for presenting its brand or product.

What is a sponsorship agreement?

The sponsorship contract is the agreement in which the sponsor or sponsor delivers certain useful goods or services to the sponsored party for the latter to carry out its usual public activities. In addition, the sponsored party generally undertakes to display or carry, during the activity, the sponsor’s name or trademark.

What is the difference between a sponsor and a collaborator?

The sponsor provides financial support, while the collaborator contributes to an event or cause by providing material or services.

Format of sports sponsorship contract

Concept: This contract is defined in art. 24 of the General Advertising Law (which mentions it, although it does not regulate it) as the contract whereby the sponsored party, in exchange for financial support for the performance of its sporting, charitable, cultural, scientific or other activity, undertakes to collaborate in the sponsor’s advertising. It is usually referred to as a sponsorship contract, using terminology from the English language.

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References to this figure can also be found in the Law on the Tax Regime of Non-Profit Organizations and Tax Incentives for Patronage, as well as in the General Law on Audiovisual Communication, which regulates the sponsorship of audiovisual programs and works, being considered as a right of the providers of communication services.

Subjects: The sponsor may be either a legal entity or an individual, and may pursue commercial purposes (it would be the advertiser referred to in the General Advertising Law) or not (for example, associations or foundations that sponsor cultural events or grant research or humanitarian aid scholarships).

What is a business collaboration agreement?

Business collaboration contracts are those by means of which different persons or companies join together to collaborate in the development or execution of a business, without constituting a legal entity different from those collaborating in the contract.

How are sports sponsorships declared?

It should be pointed out that there is no section in the Law on “sports sponsorship”, and therefore this must be accredited as just another commercial action. This implies that, as with any type of deduction, the expense must be justified with documentation.

How to deduct a sponsorship in Mexico?

In this case, there is no deduction per se, but the sponsorship money will be considered as an additional advertising expense that will be subtracted from the profit when calculating the tax.

Sponsorship agreement in colombia

Sponsorship is an advertising strategy in which an organization (sponsor) agrees to provide financing to a third party (sponsored) in exchange for the latter presenting its brand or product.

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Sponsorship should not be confused with a collaboration or patronage agreement. In the first case, the objective pursued is to promote a brand, while in the second, it is to help achieve the objectives of the sponsored entity (which must be an NGO that meets certain requirements).