Lawyer Monthly - October 2021 Edition

46 WWW.LAWYER-MONTHLY.COM | OCT 2021 WHY SOCIAL MEDIA DUE DILIGENCE IS ESSENTIAL TO SPORTS SPONSORSHIP For companies looking to improve brand recognition, connect with new target markets and boost revenues, sponsoring an influential athlete can be an alluring opportunity. The core purpose of sponsorship is for the sponsor to benefit from a positive brand association. In recent times many sponsors have gone beyond merely using the endorser as a model for displaying their logo, instead aiming to closely align themselves with the competition, team or athlete they are sponsoring in a multitude of ways. When a sponsorship deal goes well, the potential rewards for the sponsor can be vast, but agreeing a deal that goes poorly can be particularly damaging if it leads to a large amount of adverse publicity. Because sponsors depend upon the performance and image of the sportsperson they are endorsing, their conduct both on and off the pitch – including on social media – can have a heavy bearing on the potential return on investment. The rapid growth of social media over the past decade and its reactive nature means it is more crucial than ever for would-be sponsors to be on the lookout for their new sporting ambassador to ensure they carry out due diligence before any contracts are signed. Here, we explore why these steps are so critical, and explain what brands can do to limit the potential risks of agreeing a bad sponsorship deal. Why it pays for brands to do their research. Social media provides a platform for sportspeople to share their thoughts and views with millions of people around the world and, while analysing their social media activity can be a lengthy process for potential sponsors, it is a necessary one. Vetting a potential ambassador’s social media accounts could unveil comments Why Social Media Due Diligence is Essential to Sports Sponsorship David Winnie Senior Associate, Blaser Mills Law 107 Cheapside, London EC2V 6DN Tel: +44 020 7397 3744 E: dpw@blasermills.co.uk www.blasermills.co.uk Though they remain as lucrative as ever, sponsorship contracts face a new kind of peril in the age of social media and brand backlash. Sports lawyer David Winnie illustrates the importance of due diligence prior to agreeing sponsorship deals, pointing to examples of high-profile athletes whose conduct on social media has jeopardised the images of their sponsors. David Winnie is a senior associate and head of the Sports team at Blaser Mills Law. He has been practising exclusively in the field of sports law for over 11 years and deals with all aspects of sports, acting for individuals and organisations across the full spectrum of contentious and non-contentious matters in the sports sector. Blaser Mills Law is a full-service law firm offering a comprehensive range of legal services to businesses and private individuals. The firm acts for blue-chip companies as well as SMEs, entrepreneurs and not-for-profit organisations.