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"Sponsor" in Esports, Legal and Market Aspects

"Sponsor" in Esports, Legal and Market Aspects

Much is said about “Sponsor” or even “Sponsorship” or even “Commercial Partner”. All very beautiful in speech and very unpolished in the Leonine way of carrying yourself forward as properly correct action, in many cases, or in most cases.

(some parts may be based on the Sports Law in Brasil, as an example of practice)

The coercion of those who venture to have the so-called “sponsors” towards the “sponsored” comes to the ridiculous point of limiting not only athletes from certain franchises but an entire team, in total and even contractual prohibition (again informal with no Legal character ), that a certain electronic sports athlete or team cannot participate in a certain electronic sports organization, even though it is the sports administrator of that category - which is surprising for those who understand Portuguese - or even the banning of its athletes towards the relationship between friends of certain organizations, because he (the "Sponsor") does not want this interaction or because he does not want contact with others who compete with his trade, configuring something that is nothing but slavery, discriminatory and submissive, in addition to being illegal in sport, in the civil and even humanitarian.

These companies that practice such attitudes are at least contrary to any commercial competition within their area of operation, as it is exactly the opposite that commerce demands, showing their directors/owners total unpreparedness and professional/commercial immaturity in addition to the Legal ignorance of their acts towards these athletes and teams. For that, there is also the total disregard of what is democratic, free and constitutional for any Brazilian citizen.

Imagine NIKE banning athletes who use its articles and its brand from competing in places, organizations and events where it has competitors, or places where the brand is not present! It is at this moment that maturity and suitability will be present, in addition to ethics and good commercial conduct to exercise even the part that fits you as a “sponsor” when duly and regularly assumed and practiced.
Even sadder is the exchange between these Sponsors and what they offer to those who fall into this pernicious network...
As for the various, or specific, organizations that promote electronic sports events, which use these businesses that act in the ways described in the paragraphs above as supporters, partners or promoters, whose practices are those exposed and treated here in the context of the article, which are harmful to democracy, sport and even unconstitutional, are at least equal to these trades in this practice and in their consent, and sign under these practices promoting totally contrary and unscrupulous attitudes in any scope that we evaluate and judge such attitudes.
And not to mention these contracts between athletes and these businesses, where there is not even a link for many times, with the legality itself, both in the annotation of the contract, since it is signed between parties that are not, in both cases, legally constituted legal entities, and often even involving minors.

Even sadder is the exchange between these Sponsors and what they offer to those who fall into this pernicious network, practically handouts in exchange for an advantage that only they can have in putting their brands on any and all social media of these teams and athletes, making who act as commercial agents, without any salary or bonus, except for discounts on purchases or cumulative credits that materialize after months and that is if the purchase in these stores comes with the indication of these teams and athletes, but for that, read the other article with the title “The Esport Market: A Vision of Institutional and Private Sides”, tambem em “The Ethics in Sports and Life: Becoming a Better Citizen”
And from now on, not mentioning any franchise or its athletes and teams, as an example, so that it is not said that I rebel against any of them, whether they are the so-called “sponsors/sponsors”, or any denominations that can be equated with the already informal use these same terms.

Remembering also that the principle of democratization is a constitutional precept. Where there is discrimination, in whatever form it is, the highest law will be violated, and thus it will be subject to immediate correction actions within the scope of Justice.

“The principle of freedom is based on the constitutional precept according to which no one will be obliged to do or not do anything except by virtue of the law” (Const. Fed., art. 5, II).

“When practicing sport professionally, the athlete starts to have a remuneration agreed in an employment contract and becomes an employee of a sports entity, with the rights and duties of any other employee. At the end of the period set in the contract, the professional athlete is free to work for another entity, respecting the transfer rules of each sport modality.
It is also worth remembering that the practice of high-performance (professional) sport requires submission to the law and the rules of the respective sport, national and international, which no longer occurs with participation sport, although it may observe some of those rules, as a practice of formal sport.

  If the athletes do not receive any kind of pecuniary remuneration and do not sign an employment contract, nor receive material incentives and do not sign an internship contract, the entity practices a formal sport on an amateur basis. As an amateur, the athlete receives nothing from the sports entity. This is what is in the law.” (in a comment to item III of the Pelé Law), well, as we know, this is not true, as a Club or Team can indeed provide some kind of help or benefit that it has to provide.” (Pelé Law commented).
It is also appropriate here to quote the Pelé Law for, valid for sports agents and it is also up to this free interpretation on our part, for the so-called “sponsors”:

  “The contracts signed by the athlete or his legal representative with a sports agent, natural or legal person, as well as contractual clauses or power of attorney instruments that:

I – resulting from a sporting bond;


III – restrict freedom of sports work;

IV – establish abusive or disproportionate obligations;

V – infringe the principles of objective good faith or the social purpose of the contract; or

VI – deal with the career management of athletes in training under the age of 18.” (Law 12.395/2011)


The part above, starting from this paragraph, and comments are my own, below this paragraph I add the part of the noble colleague and professional specialized in sports law, President of the Sports Commission of OAB Jundiaí, the dear Dr. Édio Hentz Leitão.
“Electronic Sports in our country is seeking recognition and proper professionalization.

Proof of this is the creation of the LNEe (National Electronic Sports League), the Federations and the Confederation, where we will have a whole set of rules that will regulate our competitions and related activities, ensuring greater transparency, credibility and security.

In view of this, it is necessary that all participants seek greater organization and professionalism so that they have effective conditions to meet the standards that will regulate our competitions.

Furthermore, following this line of professionalization and organization, the teams need to look for partners who are effectively committed to developing serious work and committed to the performance of the teams in competitions.

And in this sense of partnership, it is important that teams and sponsors are aware of this hierarchical and professional system that Electronic Sports is forming.

When we talk about a hierarchical and professional system with rules and regulations, it is important that all those involved, teams, business partners and sponsors are aware that to be part of this structure, it is necessary to respect the rules issued by the administration entities .
Therefore, the relationship between sponsor and sponsor needs to be considered within this context. Every sponsorship contract needs to be created in a win-win way, that is, the interests of players, teams and sponsors need to be preserved.

If for the players and teams the important thing is to participate in the competitions, for the sponsors the important thing is the visibility of the brand. These interests need to be reconciled.

Therefore, every sponsorship contract needs to be based on fair, loyal and balanced exchanges.

Depending on the situation, a contract may not have its validity recognized if it characterizes a certain “domination” of the “strongest over the weakest”, breaking the balance and the need for fair exchanges.

Thus, it is important that these sponsorship contracts do not compromise the performance of the teams or, in a certain way, do not harm their sponsors during the competition, otherwise they will be harmed in terms of sport and, therefore, compromise their participation in competitions organized by the responsible entities.

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