8 things sports businesses should know before entering into vendor and service agreements

Professional sports organisations (teams, clubs, associations) often enter into a variety of service agreements with third parties relating to its business operations, which are fundamental to the smooth running of an organisation's venue, and the events that are held there. It goes without saying that the food, drink, cleanliness and security play a huge role in the fan or attendee experience at a venue. 

Other examples of business operations included:

1. fan engagement and ticketing solutions;
2. concessions relating to food and drink sold onsite;
3. cleaning and maintenance;
4. security; and
5. non-sport related events such as concerts, weddings and trade shows.

Not only can these agreements ensure that a service provider’s duties and obligations are clearly set out in an agreement. It can represent profitable revenue opportunities (such as food and beverage agreements) for your sports organisation, or as an event organiser.

In recent years, we have witnessed a number of important factors that can affect service or vendor agreements or sub-contracts, including the increase in supplier costs, shortage of staff, delays in the supply chain and increased demand. It is therefore important that agreements are drafted well and are robust to prevent your organisation from incurring unwanted liability.