Sport Patronage in Ukraine – The New Opportunities for Advertising

The Law of Ukraine “On physical culture and sports” was recently amended to include provisions regulating sport patronage and now provides definitions for "sport patronage" and subjects involved, as well as sets forth new requirements to patrons and beneficiaries of donations in connection with advertising of such activity.

In fact, the concept of "patronage" has been present in Ukrainian legislation for a long time. It is defined as a form of charitable activity; that is a charity provider (donor, patron) does not get any profit from such activity. Patronage is popular in education, culture and art, protection of cultural heritage, science, and research. Now this list is extended to include physical culture and sports.

Donations are made under written agreements and, in addition to money, may have such forms as land plots, buildings, vehicles, sports facilities, sports equipment etc. To encourage businesses and individuals to donate to sports as patrons, the amended law provides numerous benefits, including awards, tax relieves etc. as well as special terms for advertising.

Patrons’ activity may be advertised by any advertising media permitted by the Law of Ukraine “On advertising”, which establishes certain limitations and restrictions on advertising of alcohol, tobacco, medicines, gambling etc. However, the amended Law says that provisions of the Law of Ukraine “On advertising” do not apply here. Thus, it appears that the manufacturers of the above-mentioned products may act as patrons and enjoy additional opportunities regarding advertising, which are provided by the law. It permits placing the patron’s trademark or logo in beneficiaries’ advertising and envisages that information about the patron may be communicated in social advertising during respective sports events. The practical implementation of provision of the amended law can be seen in a while. 

We believe that the above-mentioned novelties open good opportunities for future patrons in Ukraine – from the one hand, supporting of sport events and sport teams is legitimatized, and from the other hand, disclosing information about a patron and its activity is permitted.