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Practical Law Country Q&A: Key legal issues on Sponsorship in Spain

| News | Corporate and Commercial Law

Ignacio Aparicio and Francisco Rezusta analyze the key legal issues that need to be considered when entering into a sponsorship arrangement. They contribute to the Q&A Spanish chapter on Sponsorship included in the Cross-border commercial transactions overview of the Practical Law guide, published by Thomson Reuters.

Spain-specific information concerning the key legal issues that need to be considered when entering into a sponsorship arrangement.

  • 1. To what extent will a representative appointed by the sponsor to an event's organising committee be liable to a third party who has a valid claim for compensation against the committee? 
  • 2. What action lies for using an individual's name or image without consent?
  • 3. Does an intellectual property right or any other proprietary right exist in an event? 
  • 4. What remedies does national law or regulation provide against ambush marketing?
  • 5. How does national law or regulation regulate sponsorship?
  • 6. What obligations or standards do national codes of practice or legislation impose on television and radio sponsorship? Consider, in particular:
  • • Restrictions on who can be a sponsor.
  • • Restrictions on what can be sponsored.
  • • Restrictions on the content of sponsorship.
  • • Restrictions on references to sponsors.
  • • Restrictions on advertising prominence
  • 7. How does national law or regulation control product placement and editorial sponsorship?
  •  8. What procedures exist for complaining against sponsorship? What sanctions can be imposed for infringements of sponsorship codes or laws? 
  • 9. How does national competition law affect the terms of a sponsorship agreement, for example, the grant of exclusivity?
  • 10. How does national law or regulation regulate the sponsorship of a charity?
  • 11. What tax treatment does national law give the payment or receipt of sponsorship funds to or by a charity?
  • 12. How does national law or regulation regulate sponsorship of the arts? Are there any incentive schemes to promote sponsorship of the arts?
  • 13. How does national law treat the payment or receipt of sponsorship funds? Are sponsorship expenses incurred by a sponsor tax deductible?
  • 14. Are there any obligations of the sponsored party/club which are typical due to local custom in your jurisdiction (see Standard document, Sponsorship agreement: Cross-border: clause 5)? 
  •  15. Are there any obligations of the sponsor which are typical due to local custom in your jurisdiction (see Standard document, Sponsorship agreement: Cross-border: clause 6)? 
  • 16. Would it be normal practice in your jurisdiction to require the sponsor to give warranties and / or representations with regard to its obligations under the agreement (see Standard document, Sponsorship agreement: Cross-border: clause 6)? 
  • 17. What limitations and exclusions of liability might be appropriate (see Standard document, Sponsorship agreement: Cross-border: clause 11)?
  • 18. Does the law in your jurisdiction dictate which governing law and jurisdiction will apply to the sponsorship agreement (see Standard document, Sponsorship agreement: Cross-border: clause 17.8)?
  • 19. Are there any products which cannot be promoted or have restrictions placed on their promotion in the context of the sponsorship of football clubs and in sponsorship schemes generally in your jurisdiction (see Standard document, Sponsorship agreement: Cross-border: Schedule 1)? 
  • 20. Which regulatory bodies, if any, should be referred to in the agreement? 
  • 21. Are there any compliance obligations on either party under your local laws?
  • 22. Does the sponsored party/club need to provide any formal authorisation to the sponsor (such as power of attorney, resolution, or similar document) evidencing the sponsored party/club's authorisation to enter into and perform the agreement?
  • 23. Does the agreement need to be in a language other than English for it to be valid and enforceable? Are there any other formalities which could affect the validity and / or enforceability of the agreement under national law?
  • 24. How does this agreement need to be executed to ensure that it is valid and enforceable? Does it need to be registered with any authority in your jurisdiction? 
  • 25. Are there any clauses in Standard document, Sponsorship agreement: Cross-border that would not be legally enforceable or not standard practice in your jurisdiction?
  • 26. Are there any other clauses that would be usual to see in a sponsorship agreement and/or that are standard practice in your jurisdiction? 
  • 27. From the point of view of your jurisdiction, what issues do you anticipate arising in relation to sponsorship agreements which either: (i) contain an express choice of English law as governing law; or (ii) have a UK-incorporated sponsor or sponsored party as a counterparty and are governed by the laws of your jurisdiction, in consequence of the UK ceasing to be a member state of the European Union? 
  • 28. In relation to any points identified in Question 27, would you recommend that any adjustment should be made now to Standard document, Sponsorship agreement: Cross-border if it were to be used as an agreement governed by the law of your jurisdiction, in order to address those points in advance? 

You can see the complete document here or download it here.

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