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Sponsorship Commission Agreement Template for United States

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Key Requirements PROMPT example:

Sponsorship Commission Agreement

"Need a Sponsorship Commission Agreement for our sports marketing agency that will handle sponsorship deals for multiple NBA teams, with a tiered commission structure starting at 10% for deals under $100,000 and increasing to 15% for deals over $500,000, to be effective from January 2025."

Document background
The Sponsorship Commission Agreement serves as a critical document in the sponsorship industry, establishing clear parameters for compensation in sponsorship arrangements. This contract type is essential when engaging sponsorship agents or brokers who work to secure sponsorship opportunities. It addresses key aspects such as commission structures, performance metrics, payment schedules, and compliance requirements under U.S. federal and state regulations. The agreement helps prevent disputes by clearly defining the scope of services, commission calculations, and payment terms while ensuring compliance with FTC guidelines and industry standards.
Suggested Sections

1. Parties: Identification of the sponsor and sponsorship agent/broker

2. Background: Context of the sponsorship arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement including Commission, Sponsorship Deals, Territory, etc.

4. Appointment and Scope: Terms of the agent's appointment and scope of authority to secure sponsorship deals

5. Commission Structure: Details of commission rates, calculation methods, and payment terms

6. Term and Termination: Duration of agreement and conditions for termination

7. Obligations of Parties: Specific duties and responsibilities of each party

8. Representations and Warranties: Standard assertions about legal capacity and authority to enter agreement

9. Confidentiality: Protection of confidential information shared during the relationship

10. General Provisions: Standard legal clauses including notices, amendments, governing law, etc.

Optional Sections

1. Exclusivity Provisions: Used when parties want to establish exclusive relationships in specific territories or categories

2. Territory Restrictions: Geographic limitations on sponsorship activities and commission eligibility

3. Performance Metrics: Specific targets or KPIs for commission eligibility and performance standards

4. Intellectual Property: Provisions regarding use of trademarks, logos, and other IP in securing sponsorships

5. Compliance with Laws: Specific provisions regarding FTC guidelines, advertising laws, and industry regulations

Suggested Schedules

1. Schedule A - Commission Rate Schedule: Detailed breakdown of commission rates, tiers, and calculation methods

2. Schedule B - Reporting Template: Standard format for performance and commission reporting

3. Schedule C - Approved Sponsorship Categories: List of permitted sponsorship types or industries

4. Schedule D - Payment Procedures: Detailed process for commission calculations, invoicing, and payment terms

5. Schedule E - Territory Definition: Detailed description of geographic territories covered by the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Federal Trade Commission Guidelines: FTC Guidelines on Endorsements and Testimonials that regulate disclosure requirements and transparency in sponsorship relationships

Federal Securities Laws: Regulations governing sponsorship arrangements involving publicly traded companies, including disclosure requirements and investor protection measures

Lanham Act: Federal trademark and advertising laws that protect against false advertising and unfair competition in sponsorship arrangements

FCC Regulations: Federal Communications Commission rules governing sponsorship disclosure and advertising requirements across media platforms

State Contract Laws: State-specific regulations governing contract formation, enforcement, and interpretation applicable to sponsorship agreements

State Consumer Protection Laws: State-level regulations protecting consumers from deceptive practices in advertising and sponsorship

Internal Revenue Code: Federal tax requirements governing sponsorship payments, including reporting obligations and tax treatment of commission income

Employment Classification Laws: Federal and state laws governing independent contractor vs. employee classification, including Fair Labor Standards Act considerations

Industry-Specific Regulations: Specialized rules governing sponsorships in specific sectors such as sports, entertainment, and social media

Privacy Laws: Federal and state privacy regulations governing data protection and personal information handling in sponsorship relationships

Intellectual Property Laws: Copyright, trademark, and right of publicity laws protecting creative content and brand assets in sponsorship arrangements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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