Sponsor sewing for money back!

[buster83]

some sponsors drop 110k or more just on one season,
tires,fuel chassis backup chassis but never be consider be part owner
they may part ways,at new season and search is on for new sponsor.

[ferd]

Sorry that you lost. Are you appealing?

Looks like some lessons here:
1. Sign a contract with each sponsor that states what the sponsor is promising to give you, and what you promise to do in return. If the sponsor won’t sign, find a legal way to note that or find another sponsor.
2. Do not allow the sponsor to directly pay for anything, unless spelled out in the contract. You want all receipts in your own name.
3. In the contract, specify that the sponsor is not buying part of the team or its assets.
4. Document and keep receipts for everything you spend on racing. It might help show that you own more than 50% of the operation.
5. If you accept any parts, tools or other tangible items from the sponsor, be prepared to give them back at any time. If the sponsor doesn’t want them back, get him to sign something stating that and / or prepare a document that shows you tried to return them. If the items are consumable, like fuel or oil, then specify that in the contract.
6. Document everything you do that shows you fulfilling your promises. Pictures, newspaper clippings, taped radio show, anything and everything that could be proof.
7. In the contract, probably better include language that says that any assets you already own before this contract is signed are not to be included during any future legal settlement involving this contract. Keep documentation to show what you already owned.
8. In the contract, include a clause that says that any litigation will be in a specific county or city (that is convenient to you), and that the sponsor assumes all court and litigation costs for both parties.

Disclaimer: I'm NOT a lawyer so these are just ideas. Get a real lawyer to help you with contracts, documentation and settlements. It's a shame that we have to go to all of this trouble, but it's worth it compared to losing all of your race team.

[Highbanks]

Hopefully no appeal needed. The business owner has agreed to a settlement of payment for all the items they purchased, to include the items that my buddy sold that were technically property of the business. After having time to talk this out, it is clear to me and my buddy that the intent was cleary to own the items they bought. Hopefully the car will be back in the garage within a couple weeks. The business owner stated that he would sale the items to my buddy for what he paid for them, which actually is a good deal.

My buddies lawyer told him to take the deal as quick as he can, as the business is doing him a favor as they could take everything and just walk.

[Highbanks]

some sponsors drop 110k or more just on one season,
tires,fuel chassis backup chassis but never be consider be part owner
they may part ways,at new season and search is on for new sponsor.

Were learning the hard way, if a business spends that kin dof money and pays for it through thier accounts, then it belongs to the business, it is not a sponsorship.

[racin6mod]

My buddy lost his battle today. Judge stated that business that he was involved with clearly had claimed the expenses as a business asset and had the documentation, to include all receipts, which showed such. The judge stated that the evidence clearly showed the business had invested in the race team and clearly was more than sponsorship. The business immediately filed to take possession of the race equipment until the monies owed is sorted out. The business lawyer stated that some of the items the business had receipts for had been sold and due to such all items were at risk. The judge awarded possession to the business. BOY is my buddy pissed.

As a bussiness owner/ racer I also sponsor a couple other guy's. I never buy the parts for them the way I look at it is I pay them for the sign on the car.I would not allow a sponsor to buy parts directly as that does make them part owner and the more they buy the larger their part becomes.I've seen the cloest friend's end up fighting over this stuff in the past.

[Highbanks]

As a bussiness owner/ racer I also sponsor a couple other guy's. I never buy the parts for them the way I look at it is I pay them for the sign on the car.I would not allow a sponsor to buy parts directly as that does make them part owner and the more they buy the larger their part becomes.I've seen the cloest friend's end up fighting over this stuff in the past.

I believe that is where my buddy and I lost, their is a major difference between sponsorship and co-ownership. After going through the legal battle the law seems to be clear. We to have others that pay sponsor money which is they give us cash or checks for their name on the car, the business was different, they bought the items and after talking to my buddy he said that the owner of the business did say that he was willing to buy into the race team, so I can see the difference of sposnor verses co-owner. not sure what clm5 case is, but if he can't prove he bought the times and the business can, i bleive he losses in court, or maybe he has already since he has not posted any further information.