Title
Department of Athletics: Policies and Procedures Governing Sponsorship Agreements and Trade
1. Intention of This Policy
This Policy is intended to facilitate efforts to maximize the value of Sponsorship Inventory by utilizing such Sponsorship Inventory to generate cash, products, cost savings, or other valuable remuneration for the Department. This Policy is also intended to help facilitate compliance with applicable legislation, policies, procedures, and rules of any applicable athletic governing association.
2. Defined Terms
"Department" or "Department of Athletics" means the Department of Athletics of the Institution.
"Compliance Office" means the unit overseeing compliance for the Department of Athletics.
"Institution" means the University of North Carolina-Chapel Hill.
"Multimedia Rights Partner" means any third party company engaged by the Department to help sell, barter, or otherwise procure cash, Trade, or other valuable consideration for the Department in exchange for Sponsorship Inventory.
"Policy" means these Policies and Procedures Governing Sponsorship Agreements and Trade.
"Sponsorship Inventory" means any signage, other means of advertising, or other asset of the Department that has been or can be sold or otherwise exchanged for something of value from any third party seeking to promote an entity, service, and/or product to an audience to whom the Department may be able to provide exposure.
Sponsorship Inventory typically excludes naming rights for buildings, portions of buildings, and other similar exposure provided in exchange for fundraising donations.
Any contract or other agreement with an athletic equipment manufacturer involving display of such manufacturer's logo on official athletic apparel worn by any student-athlete, coach, or other Department staff member during varsity competition, practice, or any other official athletic event of the Department shall typically not be considered Sponsorship Inventory.
"Sponsorship Agreement" means any contract or other agreement to exchange Sponsorship Inventory for cash, Trade, or anything else of value to the Department.
"Trade" means any non-monetary consideration provided by a third party as part of a Sponsorship Agreement or through any other means of exchange for any asset of the Department. Trade may include, but is not limited to: food, beverages, clothing, airfare, lodging or other accommodations, rounds of golf, printing services or materials, artwork, tickets, vehicle use, entertainment, or floral arrangements, whether such value is provided through the transfer of specific items, allocation of a certain amount of product(s) or something else of value from which deductions can be made, or otherwise.
3. Purpose of Sponsorship Agreements and Trade
The primary purpose of Sponsorship Agreements and Trade is to provide economic value to the Department, whether through acquisition of cash or other resources, cost savings through access to Trade or otherwise, or other means of deriving financial benefit.
4. Valuation of Sponsorship Inventory
To help ensure maximum value is being derived for the Department in exchange for Sponsorship Inventory, the Deputy Athletic Director/Chief Revenue Officer, the Department's Chief Financial Officer, representatives of any Multimedia Rights Partner, applicable legal counsel, and/or the Director of Athletics shall periodically meet to discuss valuations, sales conversions, and other important considerations related to Sponsorship Inventory.
Valuations of Sponsorship Inventory are typically derived using considerations including, but not limited to: market research of comparable asset valuations, sales history of individual items of Sponsorship Inventory, anticipated demand, economic conditions, and potential exposure that can be afforded to a third party through each item of Sponsorship Inventory.
5. Creation of Sponsorship Agreements and Any Other Agreements Involving Trade
A Sponsorship Agreement or any other agreement involving Trade may only be entered into by: (1) an employee of the Department who has been authorized to do so by the Director of Athletics or their designee(s); (2) an appropriate employee of a Multimedia Rights Partner; or (3) any other individual authorized to do so on behalf of the Department by the Director of Athletics or their designee(s).
Sponsorship Agreements and any other agreements involving Trade should only be entered into with third parties whose primary mission does not conflict with the mission or values of the Department.
Applicable legal counsel should be consulted as appropriate to ensure, among other things, that any Sponsorship Agreement or any other agreement involving Trade is structured to maximize economic benefits for the Department with considerations including, but not limited to: appropriate valuations of applicable Sponsorship Inventory, the value of any potential exclusivity, term length, any termination provisions, and the projected value of any Trade.
Any Sponsorship Agreement or any other agreement involving Trade that also involves tickets, parking passes, and/or credentials must be approved in advance by the Director of Athletics or their designee(s).
Any agreement involving Trade must be approved in advance by the Department's Chief Financial Officer.
After receiving confirmation of any applicable review and approval required by this Policy, the Deputy Athletic Director/Chief Revenue Officer shall review any Sponsorship Agreement or any other agreement involving Trade prior to execution, consulting with applicable legal counsel, the Director of Athletics, and/or any other appropriate individuals as necessary.
A copy of any finalized Sponsorship Agreement or any other agreement involving Trade shall be provided to and retained by the Department's Chief Financial Officer or their designee(s) for a period of at least five years beyond the expiration of its term.
6. Use of Trade
Trade may only be used for legitimate business purposes that help advance the mission of the Department.
Unless an exception is provided by the Director of Athletics, Trade may only be used by an employee of the Department who has been authorized to do so by the Director of Athletics or their designee(s), an appropriate employee of a Multimedia Rights Partner, or any other individual authorized to do so on behalf of the Department by the Director of Athletics or their designee(s).
Unless specifically approved in advance by the Compliance Office, Trade may not be used for the benefit of any current or prospective student-athlete or any individual affiliated therewith.
7. Reporting and Monitoring of Trade Usage
The Department's Chief Financial Officer or their designee(s) shall maintain an accounting of all Trade availability and usage.
After any usage of Trade, the individual responsible for using such Trade shall provide to the Department's Chief Financial Officer or their designee(s) an itemized receipt detailing the applicable Trade usage, a list of all individuals involved in such usage of Trade, and an explanation of how such usage of Trade constituted a legitimate Department business purpose.
The Department's Chief Financial Officer or their designee(s) shall periodically confirm trade account balances with each applicable vendor, then provide a full accounting of all Trade availability and usage to the Director of Athletics and other appropriate leadership of the Department so that an informed review can be conducted to ensure Trade is being utilized to maximize value for the Department.
8. Compliance
The Department of Athletics is committed to ensuring full compliance with applicable legislation, policies and procedures, and rules of any applicable athletic governing association. To help accomplish this objective, the Compliance Office, in conjunction with the Deputy Athletic Director/Chief Revenue Officer as appropriate, shall periodically provide training to all appropriate individuals (as determined in consultation with legal counsel of the Department) regarding Sponsorship Agreements, usage of Trade, permissible beneficiaries of Trade usage, and any other considerations necessary to ensure compliance with all applicable legislation, this Policy, other applicable policies and procedures of the Department and/or Institution, and applicable rules of any athletic governing association.