Sponsorships are much like singlets: one size does not fit all. In fact, sponsorships are as unique and diverse as the brands they represent. Sponsorships are also legally binding contracts and companies don’t enter in them lightly. Corporations invested a collective $57.5 billion on sponsorships in 2015, but that doesn't mean they are quick to part with their resources and enter into contracts.

Businesses big and small should be equipped with the knowledge of how to draft sponsorship agreements that will not only protect their investment and interests but also attract athletes. Those athletes should be aware of the types of sponsorships available, how to find them, and what to expect in negotiations with sponsors, so they can protect their image as well.

Defining A Sponsorship

Sponsorships are considered partnerships between the sponsor (corporation or organization) and the sponsored (athlete). Sponsors give cash or products in exchange for an athlete to represent and advertise their brand. They are attractive because sponsorships are what the contracting parties make of them. Athletes should be vigilant because when it comesto sponsorships, the corporation will want to protect its brand, investment, and image before the athletes.

Corporations big and small offer a variety of sponsorships, all of which can be enticing dependent on an athlete's needs:

Athlete: This will be our main focus in this article, as it's the most common. An individual can receive a variety of benefits from agreeing to represent a company. Travel expenses, registration fees, supplements, clothing, or stipends are all options for consideration.

Team: Team sponsorships aren’t that different from the athlete sponsorships. The main difference, as you'd guess, is that a collective group of individuals acting as a team now receive the benefits as opposed to just one person. These sponsorships are contingent on athletes remaining a part of the sponsored team. One example is Team Oly Concepts being sponsored by Nike Weightlifting. Nike Weightlifting supplies Danny Camargo's team with free warm ups, shoes, and team shirts in exchange for the right to use Oly Concept logo on merchandise sold online. Camargo and his team receive a percentage of those sales as well.

Facility: A less common sponsorship but a well-coveted one is where an organization sponsors an entire practice facility for a team or nonprofit. A benefactor organization, or group of benefactors, will sponsor a practice facility by paying its rent. In some cases, the benefactors will outright purchase the building for the team's use.

Event: Hosting a weightlifting meet or karate tournament? Local or national vendors, organizations, or individuals can help offset your hosting costs. Up and coming brands may be easier to contact for a sponsorship. One brand, Heavy Metal Barbell, has sponsored prize packs as well as weightlifting events.

Finding A Sponsorship

With the ever-present nature of social media, sponsors can be found almost anywhere. That said, not all sponsors are created equal. A mutually beneficial partnership is not unattainable, but it may take a little digging and a lot more effort than you'd think.

If you're an athlete seeking sponsorship, you first need to answer what do you have to offer potential sponsors. Your experience, social media presence, and public persona are key factors in a sponsor's decision to sign on the dotted line with you. If your main reason for a sponsorship is to get free stuff but you've never used the sponsor's products then you're likely going to be out of luck.

Corporations, big and small, also need to answer why they want to sponsor an athlete. A sponsored athlete's active social media presence could give them more advertising and potential customers that they may otherwise be unable to reach.

Some organizations and sponsors will reach out to athletes. Perhaps they are an up and coming weightlifter or a seasoned pro fresh off the podium. If a sponsor is interested enough in you to approach you, and not through an automatic bot on Instagram, then you could have more leverage as an athlete to negotiate what you will receive as compensation and how much. If you compete a lot then travel expenses and registration fees add up. If you're someone with a large social media following and do well at meets then a sponsor will be more willing to cover those costs for you.

Other organizations will post "Sponsorship Contests" looking for athletes to represent them. Companies like Lift Big Eat Big, Muscle & Strength, and Lifting Large have done this in the past. The company puts out a notice that it is looking for athletes and requests applications, video footage, and will look at your social media channels (Instagram, Snapchat, YouTube, Facebook) to see how much of an impact sponsoring you can have on their brand. Others use the Internet to their advantage requiring applicants post on their behalf with appropriate hashtags leading back to the potential sponsor: whoever has the most likes at the end may win.

What if you aren't approached by a company and can't find any sponsorship opportunities listed online? Smaller companies looking for exposure may be more willing to do business with you if you are just starting out in the sponsorship world but have a growing social media network. A good rule of thumb for those seeking sponsorships is to have at least 10,000 followers (or very close to it) before making contact with companies. Then you can reach out to them on your own. Send a brief email (under 500 words) to the company you are eyeing to let them know how you can benefit them. Make sure you are able to show them how much advertising their company will receive if they sponsor you. You do that by listing your social media handles, your number of followers on each, your career accomplishments and your future events for the year.
 
Protecting Your Interests

Sponsorships aren't just answered prayers or free advertising: they are legally binding contracts. Make sure to hunker down and draft an agreement to protect your interests regardless of whether you are the sponsor or the athlete. (Disclaimer: Although I am a licensed attorney, this article does not serve as legal advice; find local legal counsel to help you draft or review sponsorship agreements before signing.)
The following are issues that should be addressed within the sponsorship agreement. One thing to be aware of is the age of the athlete: if you are under 18, please consult your local counsel as the agreement could be considered void or voidable, meaning it will not be enforced if contested.

Definitions: Define your partnership, the parties, and list their contact information. When in doubt, define any term in the agreement. For example, if you are getting registration fees for meets paid for by your sponsor, make sure to define what constitutes a meet. Will it only be for national level events? USA Weightlifting events? What if you're being sponsored as a weightlifter? Can you be reimbursed for functional fitness event fees?

Duration: State the exact date the agreement goes into effect and how long it will last. This is especially important for building or event sponsorships. There are benefits to both short-term (three to six month) and long-term (1 year or longer) agreements. Short-term agreements can serve as a probationary period before a corporation diverts more resources to the athlete. Long-term agreements allow more exposure for both parties and provides athlete security but also allow for more time for things to potentially fall apart.

Duties: This is the meat of the agreement and will lay out what is expected of each party in excruciating detail. If your sponsor wants you to share promotional codes on social media, do you get a percentage of those profits? This part of the agreement should list what the sponsor is going to give you (money, apparel, supplements) and when they are giving it to you. It also lists what you have to do. This may include the amount of times you post on their behalf on social media, when and how you should wear their logo at events, or whether you need to name them in any interviews you give.

Consideration: What does each party get out of the deal? As an athlete, you may receive money, clothing, registration fees, supplements, or a building to train in from the sponsor. The sponsor gives those things in exchange for promotion of its brand. Will you receive a bonus if you medal at an event? Have the sponsor include an installment schedule if you aren't getting paid a lump sum or given all of the products at the outset: list how much and when the installments are to be given.

Conflicts Of Interest: If you don't like Nike shoes, then don't expect them to allow you to wear another shoe if they sponsor you. Before signing a sponsorship, make sure you are aware of any conflicts you may have. If you are sponsored by another brand, even if they are not direct competition, make sure to list your preexisting sponsorships and when they will end. Have your sponsor list specific companies who are direct competitors and be very detailed in the types of products you wouldn't be able to promote as their representative. Typically an apparel brand like Adidas wouldn't mind you promoting a supplement company, but make sure you check before signing on the dotted line. 

Rights: All need to be described. Who owns what rights? If you are involved in a photo shoot for the company can you use those images after the agreement is over? Typically the athlete gives the sponsor the right to use your name & likeness. You can limit this by specifying what kind of likeness (aka only sport specific images). The rights of the sponsor to use the images typically terminate with the agreement unless otherwise specified. 

Morals Clause: Despite its name, this clause does not concern itself with the spiritual well being of the company. This clause is driven by ethical concerns, and lays out what behaviors or actions are not acceptable by a representative of the sponsor. Examples can include criminal activity (arrests count even if not convicted), drug use, violence, and hateful language. The morals aren't societal norms, but what the company considers its morals to be; what is listed as prohibited actions is up to the company. In some cases, the athlete doesn't even have to have done an action to be threatened with enforcement of this clause: an "alleged conduct (that is) illegal or otherwise grossly offensive" which the company "reasonably believes public association would subject the company to ridicule, contempt, controversy, embarrassment, or scandal." While a Morals Clause may seem like a curtain the sponsor can hide behind to terminate an athlete, an athlete has protection under the Morals Clause, too. Some companies allow for a Reverse Moral Clause: if the company does anything that deviates from their ethics, as listed here, and would damage the reputation of the athlete by association then the athlete can remove himself from the brand. As an athlete, fight to include this in your agreement. For example, if you compete in a drug-free federation and your sponsor starts sponsoring drug-using athletes, then you have the right to use the Reverse Morals Clause and leave the brand. Remaining with the brand would hurt your reputation and image.

Liability Release: It's standard procedure for sponsors to make athletes sign a release waiver in the event an athlete is injured during the sponsored activity, so don't be alarmed if you're asked to sign one.
Confidentiality: Sponsors will likely not allow you to disclose the terms of your agreement or compensation to the public or competitors. Violations of this by either party will typically result in termination of the contract.

Breach or Termination: When you enter into an agreement, everyone is happy, but you need to prepare yourself in case the day comes when you are at each other's throats. List what would be constituted a breach of contract (failure to make scheduled payments or posts) or what actions would terminate the agreement (criminal conviction, release of trade secrets). If the sponsor fails to perform certain duties during the duration of the sponsorship, like paying you or promoting you as promised, keep track of these failures in writing. Take screenshots if you need to. Make sure to have a paper trail of infractions by the sponsor. If and when the relationship turns sour, these documents can be used to help your case. 
Dispute Resolution: It's rare that a sponsor and an athlete are from the same state. Name which state's law will govern the agreement. If you want the case to be arbitrated and not go to court, say so in the agreement. Arbitrations are binding, just like a court case would be. Specify the repayment of attorney's fees by the losing party if the agreement goes to arbitration or court.

Signatures: Make sure each party actually signs the agreement. Electronic signatures may work, depending on the method and the jurisdiction you are, but physical signatures are still king.

In a sponsorship, both parties are giving up something of value in the hopes of gaining something greater. As an athlete, make sure your rights aren't dwarfed by the sponsor and that you are truly receiving something for your promotion of the brand. Choose quality sponsorships over quantity. Ensure your interests are protected by having your sponsor be explicit in your duties, consideration, and rights while representing the brand. Be smart, be prepared, and get everything in writing.