WHY USE A SPONSORSHIP / BRAND AMBASSADOR CONTRACT

Equestrian sport has benefited from some amazing sponsorship arrangements over the years and continues to do so – with thanks to Longines, Rolex, Mars, and many others for their longstanding support at the highest levels. In recent years, there has also been an explosion in collaborations between brands and riders of all levels, working together to increase exposure both in person and online – primarily through social media platforms – to reach a wider group of potential consumers.Sponsorship and the use of brand ambassadors can create relationships with great synergy; however, at its core, it remains a commercial arrangement from which both parties must derive value. Equally, any use of media in connection with equestrian sport needs to be considered from a bystander’s perspective, as the social licence to operate for the sport is continually under scrutiny. Ensuring that the deal is properly documented from the outset can define and protect the commercial value, guide expectations within the relationship, and, if necessary, allow either sponsor or rider to exit the arrangement professionally if circumstances change.

Setting Out Clear Expectations

A sponsorship contract should clearly outline what the sponsor will provide to the rider and what the rider will offer in return. Sponsorship offers can range from discounted products to a percentage of free products, free or reduced-price services, the provision of clothing for the rider or horse, and anything in between. It is essential to be clear about what that support entails.From a brand’s perspective, it is crucial to specify the minimum deliverables expected from the rider. These will vary depending on the nature of the product or brand and its marketing objectives, but such clarity provides the sponsor with security in their investment. With the rise of influencers, sponsors can now specify how they wish their products to be promoted across different media channels and may also require that an influencer maintains a meaningful presence on each platform to uphold the agreement.

Image Rights

The use of imagery – both photos and videos – is extremely powerful on social media. However, both brands and riders must ensure they have the appropriate commercial licences for any content used. Equally, some riders may wish to preserve the rights to their image to maintain control over their personal brand and public presence.

Compliance with the CAP Code and ASA Guidance

The Advertising Standards Authority (ASA) has issued guidance for influencers promoting brands via social media, which all sponsored riders must adhere to. The guidance clarifies that advertisements must be clearly identifiable as such. Even where no money changes hands, the provision of discounted products or other benefits in return for online promotion is regarded as advertising and must comply with the CAP Code and ASA expectations.

Exclusivity

A key component of any commercial partnership is exclusivity. For a sponsor, it is critical to ensure that a rider is not simultaneously promoting competing products or services. Additionally, being part of a curated team of sponsored riders enhances brand credibility and strengthens the sponsor’s bargaining power when negotiating sponsored roles.

Specific Deliverables

Where a rider has a particularly high profile or a sponsor is aiming for a specific commercial outcome, it may be appropriate to link rider benefits to achieving defined targets. This strategy enables the sponsor to direct their marketing budget more effectively and allows successful riders to capitalise on their achievements in competition or public engagement.

Material Changes

It is wise to address at the outset how the sponsor and rider will manage significant changes during the sponsorship term. Situations such as a serious injury to horse or rider, or the sale of a top-performing horse, may necessitate a change in focus, a reduction in sponsorship, or even termination of the agreement if the rider can no longer fulfil the promotional role. Similarly, should a brand face reputational or financial difficulties, the rider may wish to suspend or renegotiate the terms of the relationship.

When to Walk Away

While both sponsors and riders enter into agreements with the hope of a productive, mutually beneficial outcome, this cannot always be guaranteed. Within the industry, there is (rightly) zero tolerance for any suggestion of horse abuse or unethical conduct. A sponsor should therefore secure clear termination rights in the event of allegations of abuse or other serious misconduct by a rider. Promoting a rider publicly effectively endorses them, and their behaviour must reflect the sponsor’s values, both in and out of the saddle.Conversely, if a sponsor fails to meet their obligations or encounters significant financial issues, the rider may wish to seek new opportunities without being bound by exclusivity clauses.

One Size Does Not Fit All!

Although a bespoke sponsorship contract might seem like an unnecessary expense, it is essential to ensure that your contract reflects the specifics of your relationship – whether you're a sponsor or a rider – and that both parties have a clear understanding of the “rules of the game” from the outset.The long-term benefits of strong, well-managed sponsor–rider relationships are evident. Demonstrating that a rider can deliver sustained value to a sponsor also makes them a more attractive prospect for future partnerships with other brands.Any initiative that helps to positively promote equestrian sport in mainstream media is valuable – both to the individuals involved and to the sport more broadly. However, it is vital that such promotion is undertaken responsibly, appropriately, and in full compliance with relevant laws and regulations, to safeguard the reputation and longevity of equestrian sport as a whole.

Jodie Seddon, Partner,

Aria Grace Equine Law

March 2024

About Jodie Seddon

Jodie Seddon is an accomplished corporate and commercial lawyer and an international equestrian athlete. She combines her deep knowledge of the equine industry with legal expertise to provide pragmatic commercial advice to riders, owners, brands, businesses, and governing bodies. She was ranked in Chambers for her work in Equine Law in both 2022 and 2023.

About Aria Grace Law

Aria Grace Law CIC is the UK’s only not-for-profit corporate and commercial law firm. It has a truly unique wealth-sharing model that benefits lawyers, clients, and society. By paying its lawyers the highest revenue share in the legal sector, it attracts top talent who deliver exceptional services to clients at great value. All firm profits are donated to charity. Aria Grace Law CIC was recognised as “Law Company of the Year” at The Lawyer Awards 2023.