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Free Sponsorship Agreement Template

A sponsorship agreement defines the terms under which a sponsor provides financial or in-kind support in exchange for branding, marketing or promotional rights. Use our free UK template to establish clear sponsorship terms for events, sports, charities or business partnerships.

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SPONSORSHIP AGREEMENT
England And Wales  ·  Trade Marks Act 1994  ·  Bribery Act 2010
SPONSOR
BrewCity Holdings Ltd
45 Business Park, Birmingham, B1 2PQ
Company No. 10234567
By: David Harrington, Marketing Director
SPONSORED PARTY
Midlands Music Festival CIC
12 Cultural Quarter, Birmingham, B2 5TT
Company No. 12987654
By: Lucy Pemberton, Festival Director
Event: Midlands Summer Music Festival 2026 · Sutton Park, Birmingham
Date: 2026-07-15  ·  Fee: £15,000.00
This Sponsorship Agreement (this "Agreement") is entered into as of 2026-03-01 between BrewCity Holdings Ltd (Company No. 10234567) ("Sponsor") and Midlands Music Festival CIC (Company No. 12987654) ("Sponsored Party"). The parties agree as follows:
1.
SPONSORSHIP AND GRANT OF RIGHTS
The Sponsored Party hereby grants to the Sponsor the right to be associated with the event, team, individual or project known as Midlands Summer Music Festival 2026 at Sutton Park, Birmingham on or around 2026-07-15 (the "Event") and to use the designation set out in this Agreement in connection with the Sponsor's commercial activities during the Term. The Sponsored Party warrants that it has full power, authority and good title to grant the sponsorship rights set out in this Agreement and that doing so does not conflict with any agreement with a third party.
2.
SPONSORSHIP FEE AND PAYMENT TERMS
In consideration of the rights and benefits granted under this Agreement, the Sponsor shall pay to the Sponsored Party a sponsorship fee of £15,000.00 (the "Fee"), exclusive of VAT, which shall be added at the prevailing rate where chargeable under the Value Added Tax Act 1994. The Fee is payable as to 50% within 14 days of the Effective Date and 50% on or before 2026-06-01, by electronic bank transfer to such account as the Sponsored Party may notify in writing. Where any sum due under this Agreement is not paid on the due date, interest shall accrue on the overdue amount in accordance with the Late Payment of Commercial Debts (Interest) Act 1998, at 8% per annum above the Bank of England base rate, without prejudice to any other remedy available to the Sponsored Party.
3.
SPONSORSHIP BENEFITS AND BRAND EXPOSURE
In consideration of the Fee, the Sponsored Party shall display the Sponsor's name and logo in the following locations and media: Main stage banner, festival website, all printed programmes, social media announcements and event wristbands. The Sponsored Party shall use reasonable endeavours to ensure that the Sponsor's branding is displayed prominently, legibly and in a manner consistent with the Sponsor's brand guidelines communicated in writing prior to use. Any advertising or promotional materials prepared by the Sponsored Party bearing the Sponsor's marks must comply with the CAP Code (UK Code of Non-broadcast Advertising and Direct and Promotional Marketing) and the Consumer Protection from Unfair Trading Regulations 2008.
4.
TRADE MARK LICENCE
Each party hereby grants to the other a non-exclusive, non-transferable, royalty-free licence to use its name, logos and registered or unregistered trade marks ("Marks") solely for the purposes of performing this Agreement and for the duration of the Term. All use of a party's Marks shall inure to the benefit of the owner of those Marks under section 29 of the Trade Marks Act 1994 and all goodwill arising from such use shall vest in the owner. Neither party acquires any right, title or interest in the other's Marks save for the limited licence expressly granted in this clause.
5.
LOGO USAGE SPECIFICATIONS AND APPROVAL
The Sponsor's logo must be used in accordance with the following specifications: Vector format (EPS/SVG), minimum 300dpi for print, minimum 10cm width on main-stage banner, full-colour only. The Sponsored Party shall not modify, distort, recolour, animate or otherwise alter the Sponsor's logo or Marks without the prior written consent of the Sponsor. The Sponsored Party shall submit all proposed materials featuring the Sponsor's Marks to the Sponsor for review and the Sponsor shall approve, reject or request amendments within 5 business days of receipt. Quality control rights under this clause are exercised to protect the distinctiveness of the Sponsor's Marks as contemplated by section 46(1)(d) of the Trade Marks Act 1994.
6.
EXCLUSIVITY
The Sponsor is granted exclusive sponsorship rights within the product or service category of Beer and cider brands (the "Category"). During the Term, the Sponsored Party shall not enter into any sponsorship or similar arrangement with any other party operating principally in the Category without the prior written consent of the Sponsor. This category exclusivity is drafted to comply with Chapter I of the Competition Act 1998.
7.
ACTIVATION RIGHTS
In addition to the branding benefits, the Sponsor shall be entitled to the following activation rights at or in connection with the Event: Branded product sampling area (150sqm), VIP hospitality tent for 20 guests, pre-festival social media reveal post. The Sponsored Party shall use reasonable endeavours to facilitate such activation, subject to applicable venue rules, licensing conditions and any regulatory or statutory requirements. All goods supplied by the Sponsor in the course of activation shall be of satisfactory quality and fit for purpose in accordance with the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.
8.
ALCOHOL SPONSORSHIP AND AGE RESTRICTIONS
Where the Sponsor's products are alcoholic beverages, the parties shall comply with the CAP Code section 18 (alcohol), the Portman Group Code of Practice and any applicable licensing conditions under the Licensing Act 2003. The Sponsored Party warrants that the Marks will not be displayed in a manner that appeals primarily to persons under 18 and that reasonable steps will be taken to restrict activation areas to adults where appropriate.
9.
MORALITY AND REPUTATION
Each party shall conduct itself in a manner consistent with good standards of business ethics and shall not do (or omit to do) anything that brings, or is reasonably likely to bring, the other party or its Marks into public disrepute, contempt, scandal or ridicule. Without prejudice to any other right or remedy, either party may terminate this Agreement with immediate effect by written notice if the other party (or, in the case of the Sponsored Party, any individual prominently associated with the Event) engages in conduct that materially damages, or is reasonably likely to materially damage, the reputation of the terminating party.
10.
ANTI-BRIBERY AND ANTI-CORRUPTION
Each party shall: (a) comply with all applicable laws, statutes, regulations and codes relating to anti-bribery and anti-corruption, including the Bribery Act 2010; (b) not engage in any activity, practice or conduct which would constitute an offence under sections 1, 2 or 6 of the Bribery Act 2010; (c) have in place and maintain adequate procedures designed to prevent bribery (section 7 Bribery Act 2010) and enforce them where appropriate; and (d) promptly notify the other of any request or demand for any undue financial or other advantage received in connection with the performance of this Agreement.
11.
DATA PROTECTION
To the extent that the Sponsored Party shares attendee or participant data with the Sponsor, each party shall comply with the UK General Data Protection Regulation and the Data Protection Act 2018 (together "UK Data Protection Laws"). Where a party acts as a controller in respect of personal data, it shall provide the required transparency information (UK GDPR Art. 13-14) and establish a lawful basis for processing under UK GDPR Art. 6 (and, where applicable, Art. 9). Where a party acts as a processor on behalf of the other, the parties shall enter into a written data processing agreement containing the terms required by UK GDPR Art. 28 prior to any such processing. Neither party shall use the other's personal data for direct electronic marketing without obtaining any consent required by the Privacy and Electronic Communications (EC Directive) Regulations 2003.
12.
CONFIDENTIALITY
Each party undertakes to keep confidential all information concerning the business, affairs, customers, clients or suppliers of the other party that it obtains as a result of this Agreement, including the commercial terms of this Agreement, and to use such information only for the purpose of performing its obligations. This obligation shall survive for three years following termination and shall not apply to information that is or becomes publicly available (other than through breach), was already known to the receiving party without obligation of confidence, is independently developed or is required to be disclosed by law, regulation or any competent court or regulatory authority.
13.
FORCE MAJEURE
Neither party shall be liable for any failure or delay in performing its obligations (other than an obligation to pay money) to the extent that such failure or delay is caused by an event beyond its reasonable control, including acts of God, war, terrorism, civil unrest, epidemic or pandemic, government action, fire, flood or failure of public utilities ("Force Majeure Event"). The affected party shall notify the other promptly and use reasonable endeavours to mitigate the effect. If a Force Majeure Event prevents performance for more than 30 consecutive days, either party may terminate this Agreement by written notice, and the Sponsored Party shall refund a pro-rata portion of the Fee corresponding to benefits not delivered.
14.
TERMINATION
Either party may terminate this Agreement by giving not less than 14 days written notice to the other party. In the event of termination by the Sponsor prior to the Event (other than for the Sponsored Party's material breach), the Sponsored Party shall refund a pro-rata portion of the Fee corresponding to benefits not yet delivered, retaining amounts reasonably spent in reliance on this Agreement. In the event of termination by the Sponsored Party (other than for the Sponsor's material breach), the full Fee shall be refunded to the Sponsor within 14 days. Either party may terminate this Agreement immediately upon written notice if the other party commits a material breach and, where such breach is capable of remedy, fails to remedy it within 7 days of written notice to do so, or enters into any form of insolvency, administration, receivership, bankruptcy or voluntary arrangement.
15.
GOVERNING LAW AND JURISDICTION
This Agreement and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter or formation shall be governed by and construed in accordance with the law of England and Wales. The parties irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any such dispute or claim.
16.
GENERAL PROVISIONS
This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior agreements and understandings. No amendment shall be binding unless made in writing and signed by or on behalf of both parties. If any provision is found to be unenforceable, the remaining provisions shall remain in full force and effect. Nothing in this Agreement shall create a partnership (within the meaning of the Partnership Act 1890), agency or employment relationship between the parties. A person who is not a party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of it.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.
SPONSOR
David Harrington
Marketing Director
BrewCity Holdings Ltd
Date: ____________________
SPONSORED PARTY
Lucy Pemberton
Festival Director
Midlands Music Festival CIC
Date: ____________________

What Is a Sponsorship Agreement?

A sponsorship agreement is a legally binding contract between a sponsor and a sponsored party (such as an event organiser, sports club, charity or individual) under which the sponsor provides funding, products or services in exchange for specified marketing, branding or promotional benefits.

In England and Wales, sponsorship agreements are governed by the general law of contract. They may also engage advertising regulations, intellectual property law and, where the sponsored party is a charity, the specific requirements of the Charities Act 2011.

UK sponsorship agreements are used for events, sports teams, arts and cultural activities, charitable initiatives and individual endorsements across Britain. A well-drafted British agreement ensures both parties understand their rights and obligations, preventing disputes about deliverables, exclusivity and brand usage under English law.

What's Covered in This Template

This sponsorship agreement template covers all the essential elements of a sponsorship arrangement.

Party Details

Full legal names and details of the sponsor and the sponsored party.

Sponsorship Fee

The financial contribution or in-kind support to be provided, including payment schedule and method.

Sponsorship Rights

The specific branding, marketing and promotional rights granted to the sponsor.

Exclusivity

Whether the sponsor has exclusive rights within their sector or category.

Brand Usage Guidelines

Rules for how each party’s logos, trademarks and brand materials may be used.

Event or Activity Details

Description of the event, programme or activity being sponsored, including dates and locations.

Deliverables

Specific obligations of the sponsored party, such as logo placement, signage, social media mentions and hospitality.

Reporting

Obligations to report on sponsorship activation, reach, engagement and return on investment.

Insurance

Requirements for public liability and other insurance coverage for the sponsored activity.

Term and Termination

Duration of the sponsorship, renewal options and termination rights.

How to Create a Sponsorship Agreement

Follow these steps to create a professional sponsorship agreement.

  1. 1

    Enter Party Details

    Provide the legal names and details of the sponsor and the sponsored party.

  2. 2

    Define Sponsorship Benefits

    List the specific branding, marketing and promotional rights the sponsor will receive.

  3. 3

    Set the Fee and Payment Terms

    Agree the sponsorship fee, payment schedule and any provisions for in-kind contributions.

  4. 4

    Specify Deliverables and Obligations

    Detail what the sponsored party must deliver, including logo placement, mentions, hospitality and reporting.

  5. 5

    Review and Download

    Check all terms for accuracy, preview the agreement and download it as a PDF for signature.

Legal Considerations

Sponsorship agreements in the UK raise several legal and regulatory considerations.

This template is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.

Reviewed for England & Wales law

Advertising Regulations

Sponsored content in the United Kingdom must comply with the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code) and, where applicable, the Ofcom Broadcasting Code. British sponsorship must be clearly identified and not mislead consumers. The UK Advertising Standards Authority (ASA) can take enforcement action against non-compliant advertising in England and Wales.

Intellectual Property

The UK agreement should clearly address the use of each party’s trademarks, logos and brand materials. Under the British Trade Marks Act 1994, unauthorised use of a registered UK trademark may constitute infringement. The licence to use British brand materials should be carefully scoped and subject to brand guidelines under English intellectual property law.

Charity Sponsorship

Where the sponsored party is a registered UK charity, the British Charities Act 2011 imposes specific requirements on commercial participators and professional fundraisers in England and Wales. UK charity sponsorship agreements must include prescribed information and the charity’s trustees must ensure the arrangement is in the charity’s best interests.

Tax Treatment

UK sponsorship payments are generally treated as business expenditure and may be deductible for British corporation tax purposes if they are wholly and exclusively for business purposes. HMRC distinguishes between sponsorship (business expenditure) and donations (not deductible for UK corporation tax). VAT treatment in England and Wales depends on whether the sponsor receives a supply of services in return.

Frequently Asked Questions

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