Why You Need a Sponsorship Agreement

Why you need a sponsorship agreement is a topic close to my heart as a lawyer and in this edition of The Business of Being a Race Driver you will find out why.

This week I also look at why Megan Meyer thinks you should break up with your old sponsorship package, why James Baldwin has turned to crowdfunding to fuel his motorsport dream, and an available LMP3 drive.

All this and more in this week’s edition of The Business of Being a Race Driver on Motorsport Prospects.

The Business of Racing

Megan Meyer explains in the video above why you should break up with your old sponsorship package! “You’re totally capable of landing dream sponsors, but doing what has always been done isn’t going to be enough to get you there. In this video, we’ll be covering why you should be avoiding the old-school 3-tier pitching structure, as well as what you should consider doing instead.”

Episode #22 of MotiV8 Training‘s Motorsport Coaching Podcast looks at Sponsorship Agreements featuring Scott McKenzie of Velocity Legal. In this show you’ll learn:

  • Why a sponsorship agreement is valuable for all parties
  • When to develop one
  • What should be included in an agreement

You can listen online here or listen on Apple Podcasts here.

Traxion explains why James Baldwin is crowdfunding his motorsport dream.

“It purely came from seeing comments on some videos of mine and seeing some of my social media followers and YouTube subscribers suggesting I should try a bit of crowdfunding,” highlights Baldwin. “My audience isn’t Jimmy Broadbent-sized, but it’s still a lot of people. At this stage where I’m not going to be on a grid anyway, I’m going to try it because there are people commenting saying ‘we want to donate’ and plus hopefully they would enjoy watching the content from those races. I simply set it up and gave it a go. I released a video to YouTube explaining the situation and I honestly didn’t expect what has happened. The response so far is crazy.”

Here are two articles that are well worth the read. While not motorsport-specific, they look at two important trends in the financing and marketing of athletes that you may want to investigate further.

In Investing In Athletes: The Newest Hot Trend, Andrew Petcash looks at the various trends that are emerging regarding investing in individual athletes. It covers everything from endorsements to athlete investment apps to NFTs and more.

In Athlete-Direct-to-Fan: The Future or FAD?, Pet Berisha looks at athlete-direct-to-fan offerings leveraging Web3. “The overlap here is logical because selling to your fans in a frictionless, small-overhead, global way without having to ship anything physical is a very attractive proposition for someone with rights to leverage.”

Sport Dimensions answers the question, How is Sponsorship Different Than Other Marketing? “In sports, and especially motorsports, sponsorship is enthusiastically accepted and intrinsically linked to a team/driver’s ability to compete. Your branding and the work you are bringing to the world is a natural fit when seen in this setting. It becomes your challenge to engage the audience, be authentic and improve the experience as a fan.”

Racing Opportunities

Why You Need a Sponsorship Agreement
For Illustration Purposes Only

Drive available! My friends at P1 Groupe have a seat open in the IMSA WeatherTech Series with a top LMP3 team at a very reasonable rate. For more details, please contact Eric at eric@p1groupe.com.

Motorsport Prospects Joins the Weekly Motoring Goodness Newsletter!

I am excited to announce that Motorsport Prospects has teamed up with the motorsport-mad folks at Racing Edge to become part of their Weekly Motoring Goodness newsletter! The first edition with content from Motorsport Prospects was part of last week’s April 14th newsletter. You can subscribe here: https://motoringgoodness.beehiiv.com/subscribe

Looking forward to having you along for the ride!

Mark Boudreau
Author: Mark Boudreau

Mark is the publisher of Motorsport Prospects. As a former lawyer, he applies his legal background and research skills to assist race drivers by showcasing the resources they need to make their motorsport careers happen.