FSM
Feature
Navigating Legal Complexities: Pitfalls And Protections In Football Sponsorships
By Marco Difato, corporate solicitor at SO Legal and specialist in sports law, working with sponsors and clubs at all levels, from grassroots to professional, including legal expertise on player contracts, stadiums and facilities, and sponsorship deals.
The firm is also the sponsor of Barrow AFC's SO Legal Stadium.
Sponsorship deals are a precious commodity for football clubs as they can boost their revenue and allow the club to associate itself with reputable corporate brands. Over recent years, the proliferation of investment into football has led to even shirt sleeves now being a prime space for sponsorship, separate from traditional kit sponsorship deals, and clubs are also offering naming rights packages for their training grounds and stadiums.
However, these partnerships can sometimes present unexpected legal and contractual challenges, especially when sponsors face financial difficulties. For example, West Ham United had to end their £7.5 million shirt deal with XL Holidays when the company's parent group, XL Leisure Group, went into administration, leaving 85,000 holidaymakers stranded. The club also faced a similar challenge in 2015 when its sponsor, Alpari UK, became insolvent, leaving the club needing a new sponsor quickly to make up for the financial loss.
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Stadium sponsorships can also face similar issues. In 2018, Northampton Town FC's stadium, Sixfields, was renamed “The PTS Academy Stadium” after securing a sponsorship deal with a training and education provider. However, the sponsorship ran into trouble when PTS Training Academy experienced financial difficulties, leading to its eventual liquidation in 2021, with the club being listed as one of the creditors.
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