Sponsoring
Main Sponsor and Co-Sponsors
Every team can have in total six simultaneously running agreements,
a contract with a Main sponsor and with 5 co-sponsors.
The contracts vary in relation to their duration and agreed
terms and it is possible to have further contracts with the same sponsors.
Contract: Fixed and Performance Related Pay
In a sponsorship contract there are fixed and variable share amounts.
The fixed share - the base amount - is paid regardless of the teams
success and is paid daily in instalments. The variable share is tied
to the teams success and is paid out once a year.
Success of the team is measured in three categories/competitions -
the League Championship, National Cup and International competitions.
Contract Negotiation
The negotiation with a sponsor takes place over numerous negotiation rounds.
It is possible to conduct a contract negotiation over several days.
Both negotiating parties submit an offer, or rather a demand in
every negotiation round. If the offer matches the demand then
the sponsorship deal is complete.
If your expectations or demands are not met by the sponsors
then the negotiations will proceed to the next round, where
both parties can modify their ideas regarding the contract
agreements and try to come to an agreement. The number of
negotiation rounds available is restricted to the willingness of
the sponsor, and with each round the sponsors preparedness to negotiate drops.
When they have reached 0 then negotiations will be ended without an agreement.
Any further negotiations with the same sponsor is then not possible.
Successor Contracts
Alongside your current sponsor contracts you can also conclude
successor contracts with sponsors, with the only difference
being the contracts will be concluded for the future.
These successor contracts will replace the current contracts once they expire.
Balance
The income from the sponsor contracts is listed on the balance
sheet in the ‘Sponsors’ section. These figures applies to the fixed
and performance related shares that are either paid daily or
at the end of the season.
Promotion or Relegation
In the instances of Promotion or Relegation, the sponsorship contracts
of the team are terminated. This applies to both current and successor
contracts. New contracts can be completed immediately after
the termination of the old contracts.
Automatic Signing of Contracts
If a team does not have Team Manager or the Team Manager can not complete
the sponsorship deals, the sponsorship deals are completed automatically,
so that the team does not miss out on sponsorship income.
Automatic contracts are only valid for current contracts and not
for successor contracts, and takes effect on the fourth day of the season.