Advertising and sponsorship contracts

Gaming and esports are growing each year and several predict that esports globally is expected to grow DKK 3.3. billion in 2016 to DKK 20 billion in 2022. Which is an increase of more than 600% in 6 years. Esports consists of incredibly loyal viewers which brands, and companies wish to make use of as in relation to products exposure.

A lot of esports players stream or have massive social media channels, which makes it interesting for brands to ask players to make advertising for them.

As a player, however, you should be aware of several factors in advertising and sponsorships.

Is the company/product something you as a player can vouch for?

Familiarize yourself with the product and the company. It would be best if you had a solid insight into whether the company’s purpose and values suit you as a person, as well as whether you can vouch for it. Remember that you create your brand through your results and your actions. It would, of course, be unfortunate if it turns out that the company is publicly exposed for using child labour or is an overt tax haven company. Preparation and background check are essential.

Conflict between your player contract with the organisation and the sponsorship

Most contracts between organisations and players contain restrictions in relation to personal sponsorships. Typically, the organisation must approve the agreements before they are entered. Therefore, be extra careful that you comply with your obligations to the organisation so that you are not suddenly forced to pay yourself out of the agreement with the personal sponsor.

What obligations do you have

You should get make sure that your obligations are described exactly. If it does not appear directly or is formulated elastically, you should consider clarifying it.

Once the commitments are established, carefully consider whether you have the time and desire to accomplish them. For example, if you commit to sitting in the sponsor’s stores around the country 50 times in 6 months, you should consider whether you have the time and desire to fulfil your obligations. In addition, your privacy may be affected by the agreement when you chose to work instead of spending time with your loved ones.

Be aware of which media, countries, and period they want to use the material.

Depending on where you are in your career, it will be essential to define the scope of advertising. Does it apply to all social media, TV, radio, and newspapers? Do you have to advertise in South Korea, Germany, and the USA? Do you have to dub your voice, so you speak German in Germany? Can they use the photos and videos they have for future clips?

For example, if you are an upcoming name and shoot an advertisement with a company early in your career. Imagine the company using your picture, video, voice etc., get used ten years later in another context without any further payments.

Always think on a long-term basis.

When do you receive your payment, and from who?

Depending on which company you enter into an agreement with, you must be aware of when you receive payment and from who. If the company promises to pay out after the advertising campaign is over and suddenly don’t believe that you should receive the full payment, are you forced to take legal action to get the full payment, especially if it is a foreign company?

Therefore, make sure that you receive as much of the money as possible before performing the work.

Are you prevented from advertising to others for a period?

Be aware of your obligations with the organisation because you may not be able to advertise for others for a period. This can be particularly intrusive, especially since careers in esports typically have a concise expiration date. Therefore, you should make sure that you do not agree to commit to one particular brand for several years

Remember to enforce it if others use your brand, images or videos with prior acceptance and payment.

It might be tempting to allow big reputable brands to use your name, video, image, or “nick” in their advertising campaign. But if you as a player don’t receive payment for it and still allows it, you will undermine your ability to make money.

Suppose all companies can advertise with all players for free. Then there would not be a single company that would pay to use the player’s “nick” and image, for example. Therefore, always make sure to crack down hard on brands that use you without your knowledge and acceptance.

The above-mentioned are just a small selection of the issues that players should be aware of in advertising and sponsorship contracts.

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