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Marketing of sporting events
The marketing of sporting events in Ecuador depends a lot on the planning of the government and the Ministry of Sports.
It is very rare to see private sporting events in Ecuador, and for this reason, it is difficult to analyze the marketing of sporting events. This difficulty is due to the fact that our jurisdiction does not recognize the possibility of exploiting the events for financial purposes, but in any case, the marketing of a sporting event in Ecuador will have to take into account the following elements:
- intellectual property: intellectual property of sporting events in Ecuador should be the most profitable area to exploit, with trademark registration and subsequent licenses for alliances with well-positioned national or international brands;
- Merchandise: Marketing of genuine products made with unique qualities from sporting events is another great opportunity for the event or the organizers to earn income related to the sporting event. Although counterfeit goods are a problem that should be resolved by the authorities, the protection of intellectual property will help prevent counterfeiting and protect investments;
- TV rights: Obtaining TV rights in Ecuador is not yet essential income for sporting events as broadcasting in Ecuador is profitable as a separate industry, and for this reason producers prefer to invest in the production of different types of events or projects on television rather than in sport. Although television rights to football matches are the biggest income in professional football, this is not the general rule for sport in Ecuador; and
- ticketing: selling tickets in Ecuador is the usual way for sporting events and clubs to earn income. Many clubs and sporting events still rely heavily on the revenue generated from the sale of tickets to consumers.
i Types of rights and ownership of rights
Most sport-related rights in Ecuador depend on each sport, but there are a number of common rights.
As mentioned above, these rights are established in Ecuadorian jurisdiction and the most common are exploited for commercial purposes as the safest way to earn economic income.
Most Ecuadorian sports try to collect income with the following rights:
- intellectual property: intellectual property of sporting events in Ecuador should be the most profitable area to exploit with trademark registration and subsequent licensing for alliances with well-positioned national or international brands;
- Merchandise: Marketing of genuine products made with unique qualities from sporting events is another great opportunity for the event or the organizers to earn income related to the sporting event. Although counterfeit goods are a problem that should be resolved by the authorities, the protection of intellectual property will help prevent counterfeiting and protect investments; and
- ticketing: selling tickets in Ecuador is the usual way for sporting events and clubs to earn income. Many clubs and sporting events still rely heavily on the revenue generated from the sale of tickets to consumers.
Football in Ecuador is different, because it is the only professional sport, and there are several ways of obtaining economic benefits. The other two types of rights exploited in football are:
- TV rights: Obtaining TV rights in Ecuador is not yet essential income for sporting events as broadcasting in Ecuador is profitable as a separate industry, and for this reason producers prefer to invest in the production of different types of events or projects on television rather than in sport. Although television rights to football matches are the biggest income in professional football, this is not the general rule for sport in Ecuador; and
- transfer rights: the transfer of players in football is a very important way for clubs to earn income. In Ecuador, most football clubs sell clubs and try to sell players for large amounts to help them maintain a good structure.
ii Protection of rights
The protection of rights in Ecuador depends on the right protected. In addition, the rights holder can choose which jurisdiction can protect their rights.
The jurisdictions that can be used to protect rights in Ecuador are civil courts, criminal courts, administrative courts and sports courts. Using one will likely exclude using the others, and the decision to choose a specific jurisdiction depends on the benefits that jurisdiction gives.
The use of a jurisdiction also depends on the statutes of the national sports federation, which will allow or deny access to a specific court.
The most common courts used in Ecuador to protect rights are the sports courts due to the facilities provided and the specificity of the sport.
iii Contractual provisions for the exploitation of rights
There is no mandatory provision in Ecuadorian sports regulations that should be included in a contract for the exploitation of rights, and for this reason the contracts are drafted in accordance with the Ecuadorian Civil Law Code to structure all the provisions that must be included in the contract to be binding on all parties.
If a third party is interested in exploiting sports-related rights, the minimum contract provisions are the same as in a commercial contract and are as follows:
- parties;
- Goals;
- duration;
- Payment;
- jurisdiction; and
- alternative dispute resolution.