This post was originally published on the Green Cactus Blog and is republished here with permission.
The live events industry is experiencing a period of extreme uncertainty. As local governments across the country increase restrictions on social gatherings due to COVID-19, event cancellations and postponements are becoming the norm. This disruption affects every area of event planning — especially event sponsorships.
Despite the turbulence, this is not the end. Sponsors aren’t disappearing — they’re adapting. Our agency is currently seeing four common responses from sponsors and prospects during this time.
1. Sponsors Placing a Hold on Pending Sponsorships
The most common response from brands is to place a temporary hold on pending sponsorship agreements. They’re assessing the financial landscape before making commitments.
Important takeaways:
- A hold is not a “No.”
- Many brands are still “all-in” on future events but are following corporate mandates to pause new deals for 4–6 weeks.
- Stay in communication. Sponsors are navigating the same uncertainty as you.
Use this downtime wisely:
- Refine sponsorship contracts.
- Brainstorm creative campaign activations.
- Prepare for a busy season once the industry rebounds.
2. Sponsors Canceling Their Agreements
Unfortunately, some sponsors are canceling their contracts — either due to event cancellations, PR sensitivity, or economic downturns.
Why this happens:
- The brand’s audience includes vulnerable populations.
- They fear appearing irresponsible by associating with live events.
- Their company has suffered financially and is cutting expenses.
What to do:
- Review your contract’s cancellation and refund policy.
- If the brand cancels before the event does, many contracts allow you to retain sponsorship funds.
- However, refunding may preserve long-term relationships. Assess on a case-by-case basis.
3. Brands Proceeding with Sponsorships (With a COVID-19 Clause)
Some brands are moving forward — but only with added contract protection.
Why a COVID-19 clause is critical:
- It provides clarity and confidence for sponsors in case your event is canceled or rescheduled.
- These clauses can offer:
- A full refund, or
- A prorated refund based on deliverables (e.g., digital impressions, email campaigns)
Pro tip: Tailor the language to each deal. Talk with your legal team and show sponsors that you’re proactive and prepared.
4. Sponsors Waiting to See What Happens
Many sponsors who already signed — or were close to signing — are choosing to stay committed but are waiting for clarity.
This is a good sign. Most brands are still invested in your success because your success impacts theirs.
What you can do:
- Keep the lines of communication open.
- Offer reassurance and show how you’re adapting plans.
- Stay flexible and collaborative as timelines shift.
Key Things for Event Organizers to Keep in Mind
The live events and sponsorship landscape is shifting, not disappearing. While new deals may pause, many sponsors are still on board — just cautiously so.
Here’s how to stay prepared:
- Use this time to review and revise your contracts.
- Start planning stronger activations for when the industry picks back up.
- Communicate transparently and frequently with your partners.
Make the Most of the Downtime: Innovate and Create
While things may feel stalled, this “pause” is a powerful opportunity for innovation. Here’s how to make it count:
Use this time to:
- Research event technology to streamline operations.
- Experiment with new sponsorship ideas or virtual engagement formats.
- Develop blue-sky concepts that could elevate your next event.
- Strengthen your team’s creative and strategic thinking.
Final Thoughts: The Future of Sponsorships Post-COVID
The only certainty in today’s world is change. The sponsorship landscape during COVID-19 is evolving — and so should your strategy.
Be proactive. Be prepared. Use this time to build stronger relationships and lay the foundation for a vibrant comeback when live events return.
As always if you are looking for a great event to attend you can purchase tickets HERE.
Other Articles
Creating Events with Accessibility In Mind
