The Legal Qualification of the Athlete Sponsorship Agreement
An athlete's sponsorship agreement in Georgia falls within the frame of advertising law: Article 13 of the Law on Advertising defines sponsorship as the contribution of physical and legal persons to the activity of other physical and legal persons — in the form of money, property, results of intellectual activity, rendering of services, services rendered, or performance of work — on condition of the distribution of advertising for the goods produced by the sponsor. In the athlete's case this means that a brand's financial or material support is directed toward the advertising use of the athlete's name, image and public presence. The law assigns the roles directly: the sponsorship contribution is regarded as the value of the advertising, the sponsor as the advertising customer, and the sponsored athlete as the distributor of the advertising. At the same time, the sponsor has no right to interfere in the activity of the advertisement's producer and distributor — the athlete determines the format of his or her own appearances and content. This combination of clear role allocation and creative autonomy defines the everyday grammar of endorsement deals.
Prohibited Sponsors and Gambling Advertising
Article 13 also restricts who may sponsor at all: a person whose goods or activity may not be advertised under the law has no right of sponsorship; and direct or indirect sponsorship — through other physical or legal persons — by manufacturers, importers and sellers of tobacco products, tobacco accessories and devices intended for tobacco consumption is prohibited. Particularly important for sport is Article 8-3: the distribution of advertising concerning gambling games, totalizators, lotto, bingo and their organizers is in general impermissible, save for exceptions — including the case where the advertising is distributed at the venue of a sports event or competition, or at the place of activity of a sports organization, and is designated as a condition in exchange for sponsorship of their activity. The other exceptions concern licensed websites, the gambling venue itself and airports; the area of a sign must not exceed 10 square metres, and the placement of more than one sign is impermissible. For an athlete this makes matters plain: bookmaker sponsorship is possible only within this narrow frame, and its free promotion in personal social channels is prohibited by law.
Protection of Minor Athletes
Where the party to the sponsorship agreement is a young athlete, Article 14 — the protection of minors in the production, placement and distribution of advertising — comes into play. It is prohibited to inspire minors to persuade parents or other persons to buy the advertised goods; to draw their attention to the notion that possession of the goods gives them an advantage over other minors; to place text, audio and video information showing minors in a dangerous place and situation; to disregard the necessary level of skills for using the goods — and where the results of use are shown or described, the advertisement must give information about what is realistically attainable for the age group concerned; and to create an unreal, distorted impression of the value of the goods, in particular through the words "only", "just" and the like, or through direct or indirect indication that the advertised goods are accessible to every family budget. When planning a sponsorship campaign, these restrictions directly determine what a young athlete may do in advertising and which formats are lawful.
Retention of Materials and the Allocation of Liability
Article 15 imposes a documentary duty on each party: the advertising customer, producer and distributor are obliged to keep the advertising materials or copies thereof, including every subsequent change, for 2 months from the day of the last distribution of the advertising, and where the material becomes disputed — until the dispute is resolved by the corresponding organs. Article 20 allocates liability: the advertising customer answers for the content of the information submitted for creating the advertisement, unless it is proven that the violation occurred through the fault of the producer or distributor; the producer answers for the part concerning design, production or preparation; and the distributor for the part concerning the time, place or means of distribution. In an athlete's sponsorship relationship this allocation determines who answers for which element of the campaign — and the agreement must map these roles precisely, because statutory liability follows the function, not the contract's title.
Frequently Asked Questions
We answer the most frequently asked questions about athlete sponsorship agreements below.
Who is the advertising customer in sponsorship?
Under Article 13 the sponsor is the advertising customer and the sponsored athlete the distributor; the sponsorship contribution counts as the value of the advertising.
May a bookmaker sponsor an athlete?
Only within the exceptions of Article 8-3 — for example at the venue of a sports event as a condition in exchange for sponsorship; other forms, including promotion in the athlete's personal channels, are impermissible.
What is prohibited in advertising featuring a young athlete?
Article 14 prohibits persuading parents to purchase, projecting advantage, showing dangerous situations, disregarding skill levels and distorting the price impression.
How long must advertising materials be kept?
Under Article 15 — for 2 months from the last distribution, changes included, and where disputed, until resolution.
How We Help on Legal.ge
The Legal.ge team assists athletes and sponsors in preparing sponsorship agreements and resolving disputes: we align contract terms with the requirements of advertising legislation, check the restrictions on the gambling and tobacco sectors, review campaigns involving minor athletes, and assess the allocation of liability. If you have a sponsorship offer or an existing agreement has become doubtful — contact us on Legal.ge and we will plan a safe decision based on your situation.