Advertising and sponsorship contracts
By: Reem Daye
Tags: Gaming, Esport, Law, Sponsorship, Contracts

Advertising and sponsorship contracts

Due to the continuous growth of gaming and esports, the market is expected to reach a total of DKK 20 billion in 2022 and is expected to grow at a robust rate of over 60% in 6 years. Esports consists of loyal viewers which brands and companies wish to use concerning products exposure.

Esports players usually have massive social media channels, which makes it interesting for brands to ask players to make advertising for them.

As a player, however, you should be aware of several factors in advertising and sponsorships.

Is the company/product something you as a player can vouch for?

Before you start working with the company, make sure that you thoroughly understand its goals and values. This will help you create a brand that works for you. Start by familiarizing yourself with the product and the company. Know whether the company’s purpose and values suit you as a person, as well as whether you can vouch for it. Remember that you create your brand through your results and your actions. It would be unfortunate if it turns out that the company is exposed for using child labor or is an overt tax haven company. Preparation and background checks are essential.

Conflict between your player contract with the organization and the sponsorship

Most contracts between players and organizations contain restrictions on the terms of personal sponsorships. This means that the organization must approve the agreements before they are entered. Therefore, be careful that you comply with your obligations to the organization so that you do not become forced to pay yourself out of the agreement with the personal sponsor.

What obligations do you have?

Make sure that the obligations are clearly described. If they are not, then you should consider clarifying them. Before committing to a certain task, make sure that you have the time and desire for it. For instance, if you commit to sitting in the sponsor’s stores around the country 50 times in 6 months, you should consider whether you have the time and desire to fulfill your obligation. It should be noted that you do not have the time to fulfill the obligations if it is the case. In addition, your privacy may be affected by the agreement when you opt to work instead of spending time with your loved ones.

Be aware of which media, countries, and period they want to use the material.

You must define the scope of advertising that you will be doing. This will help you determine which platform and media you will be working on. Questions lie these should come to your mind: Does it apply to all social media, TV, and newspapers? Do you have to advertise in Germany, and the USA? Do you have to dub your voice, so you speak German in Germany? Can they use the photos and videos they have for future clips?

When do you receive your payment, and from who?

You must be aware of the date when you receive payment and the company that you enter into an agreement. If the company suddenly doesn’t pay up after the contract is signed, then you may be forced to sue. Therefore, make sure that you receive as much of the money as possible before performing the work.

Are you prevented from advertising to others for a period?

Due to the nature of esports, it is very common for individuals to not be able to advertise for a long time. This is especially important since most careers in esports have a short expiration date.

Remember to enforce it if others use your brand, images, or videos with prior acceptance and payment.

It can be tempting to allow big brands to use your name and image in their advertising campaigns. But, if you don’t get paid for it, you will be undermining your ability to make money.

All companies could advertise with all players for free, but make sure that they are doing so in a way that is fair and transparent. This idea is not only beneficial for players, but also advertisers.

The above-mentioned are just a small selection of the issues that players should be aware of in advertising and sponsorship contracts. To know more about legal news related to gaming and esports, check out Lexyom’s Legal News publications.

Legally Yours,