Baker McKenzie LLP | View firm profile
In recent years, the sports and entertainment industry has undergone a remarkable transformation, evolving into a highly commercialized and globally influential sector. Sponsorships in the sports and entertainment industry have expanded significantly.
In Thailand, top-tier e-sports and boxing tournaments, the upcoming 2025 Southeast Asian Games, and a prospective racing Grand Prix all offer exceptional sponsorship opportunities for both local and international brands seeking valuable exposure in the Thai market. This shift reflects not only the growing financial stakes in sports, but also the strategic importance of sponsorships, especially given the expansion offered by new streaming platforms.
As a result, sponsorship activities have become more diverse and sophisticated. Companies are not only sponsoring entire events but also individual athletes, teams, and even specific moments within a game. Broad-scale sponsorship differs tremendously from more granular, targeted individual deals. Sponsorship agreements are no longer simple transactions; rather, they are complex commercial arrangements that require careful negotiation, compliance with evolving regulatory frameworks, and alignment with broader marketing and brand strategies.
Therefore, agreement structure is key. All parties involved in sponsorship agreements must pay close attention to the legal foundations that govern these relationships. A well-drafted and negotiated sponsorship contract not only delineates the rights and obligations of each party, but also serves as a safeguard against potential disputes and regulatory challenges. The following are some of the key legal considerations that the sponsor should consider before entering into the sponsorship arrangement.
- Defining and protecting sponsor rights
A well-structured sponsorship package should grant the sponsor exclusive visibility and engagement opportunities across different types of media and event experiences. This includes rights to use key brand assets, access premium hospitality, and other tailored privileges. To protect the sponsor’s investment, contracts should include exclusivity clauses and visibility guarantees, such as guaranteed social media reach, and athlete and team deliverables, so that impacts can be measured.
- Safeguarding brand reputation
To protect the sponsor’s image, agreements should include clear provisions that allow for swift disengagement in case reputational risk occurs. This is especially critical in athlete endorsements, where public conduct can quickly impact brand perception. A well-crafted morality clause can ensure that the sponsor can exit the partnership if actions or statements conflict with its values.
- Managing unforeseen disruptions
Major events are vulnerable to unexpected disruptions, from extreme weather to political unrest. To protect both parties, sponsorship agreements should include clear provisions for handling such scenarios. These clauses help ensure flexibility and preserve commercial value by outlining how rights and obligations may shift if the event cannot proceed as planned.
- Guarding against ambush marketing
Even with exclusive rights, sponsors remain vulnerable to ambush marketing, an especially acute risk in sports events. It is therefore essential for the sponsors to pre-verify that the host city or country enforces robust IP and anti-ambush laws, or can adopt ad hoc protections, and will actively cooperate to uphold sponsor exclusivity. The agreement should also obligate the rightsholder to deploy all feasible anti-ambush measures and monitor competitor activity so as to protect the sponsor’s investment.
At Baker McKenzie, we combine deep industry insight with global and local legal expertise to help clients structure sponsorship agreements that are commercially sound and resilient to risk. Whether advising on high-profile event partnerships or individual athlete endorsements, our team is committed to delivering strategic, forward-looking legal solutions that ensure long-term brand success.
With a renowned global network and professionals located across more than 70 offices in over 40 countries, we can handle all your legal needs, regardless of whether you require a local, regional, or global perspective.
For more information, please contact us.
Contact Us
Nuchaya Timrat
Partner
Tel: +66 (0) 2666 2824 ext. 1007
Nuchaya, with Baker McKenzie since 2007, specializes in Corporate/M&A, real estate, and hotel development. She advises on cross-border investments, joint ventures, and complex deals, including sports and entertainment projects. Her expertise spans foreign investment laws, restructuring, property development, and licensing.
Naris Asavathongkul
Partner
Tel: +66 (0) 2666 2824 ext. 1013
Naris, with Baker McKenzie since 2017, specializes in Corporate/M&A, joint ventures, and corporate reorganizations across diverse sectors. Recently active in sports and entertainment transactions, he also advises on technology, media, retail, and real estate. Recognized as a leading transactional lawyer, he delivers exceptional expertise in complex, high-value deals.