14B NCAC 15C .0713      TOURNAMENTS

(a)  General. An industry member may sponsor a regional, statewide, or national sports tournament on the property or premises of a retail permittee only if all of the following conditions are met:

(1)           The tournament is promoted or sanctioned by the official governing body of the sport, or is promoted and sponsored by a nonprofit organization for the purpose of raising funds for a civic, scientific, charitable, or educational cause;

(2)           An industry member does not give, rent, or loan money, novelty items, prohibited services, or things of value to the retailer; and

(3)           An industry member gives all sponsorship money, fees, and things of value to the official governing body of the sport or the nonprofit organization.

(b)  Advertising. An industry member may advertise or pay for the advertising of a tournament only if the primary purpose of the tournament is to raise funds for a civic, scientific, charitable, or educational cause. The Commission shall consider advertising materials, social media accounts, and websites in determining a tournament's primary purpose. Citing the retailer's premises as the location of a tournament shall not be construed to be cooperative advertising in violation of 14B NCAC 15B .1005 when the retailer's trade name is stated in substantially smaller typeface than the majority of the advertisement.

(c)  Sponsorship/Advertising Agreements Restricted. No industry member agreeing to sponsor a tournament shall enter into any agreement or contract, either express or implied, that a retailer or special one-time permittee will sell that industry member's products to the exclusion, in whole or in part, of other brands of alcoholic beverages offered by competitors.

(d)  Joint Sponsorships. An industry member shall not agree to cosponsor a tournament with a retail permittee unless the proceeds from the tournament are paid to a nonprofit civic, scientific, charitable, or educational organization.

(e)  Prohibited Sponsorships. An industry member shall not sponsor or aid a retailer in the promotion of a tournament held to benefit the retailer, its employees, members, or guests.

History Note:        Authority G.S. 18B-100; 18B-207;

Eff. July 1, 1992;

Amended Eff. November 1, 2012;

Transferred and Recodified from 04 NCAC 02T .0715 Eff. August 1, 2015;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. August 19, 2017;

Readopted Eff. May 1, 2026.