Legal support: withdrawal of sponsor

Motorsportlaw.org assisted quite some teams and individual drivers that were confronted with withdrawing sponsors. We share some of the learning moments with you. Hopefully you will not need this info.

The most important aspects how to tackle such a nasty event are:

1. Confirm you (verbal) agreement to the sponsor in writing.
2. Keep your files complete and up-to-date.
3. Arrange a down-payment by the sponsor asap.
4. Never discuss a sponsorship face-to-face. In case you want to enforce the verbal agreement you reached with your sponsor, you will need witnesses to confirm that your views are right.
5. If a sponsor does not pay timely or fully: confirm this breach in writing to him. Preferably by registered mail.
6. Give the sponsor an extra period of let's say two weeks to cure his breach.
7. If he still does not pay, announce legal proceedings to him. This notice should be preferable written by a lawyer knowledgeable in the motorsport arena.
8. If your sponsor is still not performing: sorry but you have to go to court.
9. Seperately you could inform your National Sporting Authority to have this sponsor black-listed, in order to prevent that something similar will happen to you fellow drivers.
10.Never sign a document presented by your sponsor "to solve the dispute" without taking legal advice about the consequences of your signature.

Rgds,

Breus van der Horst.

Please note: this info is meant for educational and demonstrative purposes only. Review this legal information with your motor sports attorney before using it in your particular situation.
Motorsportslaw.org makes no warranties, express or implied regarding the use or enforceability of the legal information on this site.