SPONSORSPARTNERS
Sponsorship, like any form of business negotiation, requires lawyers. Some companies will feel that they have enough legal resource internally to manage the process, but most will need to turn to third parties with specialist expertise. Here we list some questions worth considering before you sign up a law firm.
1. How do you start your law firm search? There are a few companies (a dozen or so) that are well known to the sponsorship industry so starting by asking around. A couple of established names also pop up if you google the appropriate search terms. For a more formal approach, you can go to The Law Society’s website and do a search of their database. Specify media, entertainment and sport, for example, and you’ll find 683 entries around the country. Specify London W1 and the number drops to is 475.
2. Do they have relevant industry experience? Law firms come in all shapes and sizes so it is important that the firm you choose has a proven track record in sponsorship. When conducting enquiries, ask what projects they have worked on. Are they comfortable with sports sponsorships, or do they have particular knowledge in media-related areas like AFP programming? Also find out what part of the process they were involved in on previous jobs. Is their main expertise in drawing up contracts, negotiating rights or have they had experience resolving disputes with rights holders over terms? Do they have any certificates that prove particular skills?
3. Will they be proactive partners? Law firms that understand sponsorship will know the importance of creativity in contractual negotiations. The ability to spot commercial opportunities when drawing up rights agreements is just as much of an asset as making sure that contractual terminology is watertight. In other words, you should think of your lawyer almost as though they are a commercial advisor. Ask them whether they have worked for both sponsors and rights owners (such as events, teams and leagues) because that will be a valuable asset in negotiations.
4. How is the firm structured? Is there a dedicated division that deals specifically with sponsorship or is sponsorship part of a much broader division? If that latter, can the firm reassure you that it will not lose focus on your needs? Is the firm a huge international corporation or a small boutique? Both have their advantages but it is worth exploring this issue to see if they are the kind of firm that will fit well with your own corporate culture.
5. How well-resourced are they? How many lawyers are available to you and what are the typical demands on their day? Will you be allocated a specific contact or be expected to liaise with a large team covering numerous briefs? How senior will they be? Are they plugged into a network of related skillsets? Where are they located? Do they have support near where you are based or is it likely to turn into a long-distance relationship? Do they have professional indemnity insurance? If so, what level of cover?
6. Is there any objective third party you can talk to? Can you get guidance and advice from a relevant third party? Maybe you can get legal recommendations from the company that had your sponsorship before you. Or maybe you can find another company that has dealings with the law firms you are interested in. For sponsors, it is worth talking to sponsorship consultancies about their experience working with lawyers on other projects
7. What do their offices look like? If possible, go and see lawyers at their offices. This will give you a sense of how organised and efficient they really are. You’ll get a first-hand view of the kind of support staff each lawyer has and you’ll also get a feel for whether they are friendly and helpful. Look for red flags such as untidiness, unhappy looking staff or unused space/empty offices.
8. What is the cost structure likely to be? This is an obvious question when dealing with lawyers. But make sure you get a price and are clear about what is included and what isn’t. What extra costs may be involved in addition to lawyer fees (postage, filing, etc?) Check everything against other firms to work out a realistic range. Don’t go for the cheapest until you’re sure no corners are being cut. Ask how often you will be billed.
9. Do they outsource any aspects of their work? Be clear about the scope of the law firm’s activities. Make sure you know whether they will handle ever scenario in-house or outsource some elements. If they outsource find out why they do so and who they typically work with – then carry out the above checks.
10. How good are they at communicating? Good communication is a critical element of any lawyer’s service, so consider whether you received prompt and courteous responses to questions. Have they offered any free advice or come up with any persuasive added extras that appeal to you? What is their website like? Does it provide a clear summary of their services or maybe even a blog that will allow you to get a feel for the personality of the firm?