What is the difference between a Sponsorship and an Assisted Purchase Agreement?

Sports sponsorship and assisted purchase agreements are two terms that are commonly used in the world of sports. While both of these agreements can benefit players, there are significant differences between the two. In this blog post, we will discuss the difference between sponsorship and assisted purchase agreements from a player's perspective.

Sponsorship Agreements

A sponsorship agreement is a contract between a player and a company that agrees to provide financial or other support to the player in exchange for certain promotional rights. In a sponsorship agreement, the player may receive payment in the form of cash, equipment, or other benefits, and in return, the player agrees to endorse the sponsor's products or services, and often to not use any products other than those provided by the sponsor.

From a player's perspective, a sponsorship agreement can be a great way to earn extra income and build their personal image. Sponsorship agreements can also provide players with access to top-of-the-line equipment, training facilities, and other resources that they may not have had access to previously.

Assisted Purchase Agreements

An assisted purchase agreement is a contract between a player and a company. In an assisted purchase agreement, the player can purchase products from the sponsor at discounted prices. Players usually agree to receiving a set percentage discount off the retail price (SSP or RRP) of products from the sponsor. These products can then be purchased by the player from a place specified by the sponsor, this is usually a physical store or website owned by the brand. Alternatively, distributors of the brand may also be agreed for the player to purchase products from them at the agreed discounted price.

From a player's perspective, an assisted purchase agreement can be an excellent option if they need expensive equipment that they may struggle to purchase at their retail price. For example, an assisted purchase agreement could be used to finance a new goal keeping kit or top of the range stick.

The Differences

While both sponsorship and assisted purchase agreements can provide benefits to players, there are significant differences between the two. The primary difference is that a sponsorship agreement is a form of endorsement, whereas an assisted purchase agreement is a form of financing, to support the player in their sport.

In a sponsorship agreement, the player agrees to promote the sponsor's products or services in exchange for free products, funding, or both, while in an assisted purchase agreement, the player agrees to purchase equipment or services at a reduced price. Additionally, assisted purchase agreements typically provide players with more flexible terms than sponsorship agreements.

Conclusion

In conclusion, sponsorship and assisted purchase agreements are both important tools that players can use to finance their careers in sports. While both agreements can be beneficial, they have significant differences that players should be aware of when considering their options. Furthermore, it is also important to remember that you must be 18 years of age or older to sign any sponsorship or assisted purchase agreement. Anyone who is under the age of 18 will require a parent/guardian to sign the agreement on their behalf. Whether a player chooses a sponsorship agreement or an assisted purchase agreement, it is essential to read the terms of the contract carefully and ensure that they fully understand their obligations before signing on the dotted line.

What not to do when applying for Sponsorship/Assisted Purchase Agreements

If you ask most brands, they report that they receive many requests for sponsorship. It is also reported that some players send the same stock letter out to all brands requesting sponsorship and/or assisted purchase support. On many occasions players request support from brand ‘A’, only to forget that later in the letter they finish by stating what a ‘great ambassador’ they would make for brand ‘B’. This is always a giveaway to brand ‘A’ that they have sent multiple copies of the same letter to various brands. This is something that will always guarantee a refusal.

An example of the above is that on one occasion, it was discovered that a player/coach had 6 different sponsors. The consequence was that all sponsors were informed, and dishonesty resulted in the player/coach being refused any further support from all the brands concerned.