10 Red Flags in Motorsport Sponsorship Contracts
Contract clauses grassroots drivers commonly overlook and practical negotiation techniques
WSJ, drawing on real contract dispute cases and specialist legal interviews, has compiled ten contract clauses that grassroots drivers most commonly overlook before signing a sponsorship agreement.
1. Overly broad competitor exclusion — negotiate to a specific product category, not 'all automotive.' 2. Perpetual SNS content licence — limit to the sponsorship period. 3. Refund clause for missed follower targets — add force majeure safe harbour. 4. Strict logo compliance penalty — add alternative approach clause with prior sponsor approval. 5. Non-refundable fee with asymmetric sponsor termination rights — request pro-rata refund upon early termination.
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