Design From the Top Down
This is the single most important rule, and the one most often ignored. The top third of a sail flag is the only part guaranteed to be visible.
Everything below it gets blocked, by crowds, parked cars, tables, stalls, hedges, and the people standing at your own stand. At a busy event, the lower half of a flag might as well not exist.
So your logo goes at the top. Not centred, not at the bottom, and not spread evenly down the length. If someone can only see the top third of your flag over a crowd, they should still know exactly who you are.
Below that, the middle can carry a short supporting message. The bottom is best treated as colour and pattern rather than information.