Equine Advertising/ Sponsorship: a look at Pepsi and TWH

Did you know that Facebook's number one revenue source is from advertising?  Companies spend millions of dollars to imprint, create, and retain a perception of their particular brand in the eyes and minds of the consuming public.
Advertising is therefore an important aspect of equine events, and can be a valuable source of financial income for the organizations planning and running the events.

One story that has been in the news lately is the video of a top Tennessee Walking Horse (TWH) trainer abusing and watching his grooms abuse a show horse by hitting it with wooden sticks and zapping it with a cattle prod to attain the desirable high-stepping gait.  Absolutely horrid; I can't even bring myself to watch the full video or embed it here.
In response, Pepsi drops its sponsorship/ advertising at the TWH Championships/ Celebration (read the article here.  Warning: also includes the video); that loss of financial income will likely be of great financial detriment to the show.

Photo Source: Tennessee Walking Horse Breeders' and Exhibitors' Association

Equine Sponsorship Contracts
Corporate Sponsorship of an event is a means for a company to enhance its local and national (and perhaps global) recognition, enhance goodwill, and showcase products.
A sponsor will enter into contract with the event to establish the sponsorship rights, such as how much the sponsor must pay, a license for the event to use the sponsor's trademark, and-- important to the TWH/ Pepsi agreement-- a termination clause.
If you are an equine sponsor it is important to consider a termination clause that provides the grounds for your right to terminate the contract, or for liquidated damages (definition here) in the event of termination.

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On one hand, Pepsi should be applauded for taking a strong stance against animal abuse.
On the other hand, should Pepsi be punishing all the competitors for the acts of the few?