Canadian corporations with advertising budgets in excess of $50,000 Cdn that are currently involved in sport sponsorship were contacted through a mailed survey. They were asked about the length and nature of their sport sponsorship involvements, the criteria used to select events, post-event evaluation methods, and reasons for discontinuing past sponsorships. The results revealed that these companies valued sport sponsorship as an important form of marketing communication but supplemented sponsorship initiatives with a variety of other communication measures. None viewed sponsorship as a philanthropic exercise. Respondents repeatedly noted the importance of return on investment in making sponsorship decisions. They valued exclusivity, public awareness, and positive image above other criteria when selecting sponsorship opportunities. Most of the sponsors had discontinued a sponsorship relationship in the past. Furthermore, only one-third of the sponsors felt that the benefits exchanged with sport organizers were fair and equitable.

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Public, not-for-profit, and private sector sport groups are increasingly exploring innovative means of generating funds. Sponsorship represents one promising revenue alternative. This paper uses exchange theory to discuss and describe sport sponsorship and offer propositions. These propositions are based generally on the principles of exchange and often reflect current practice. As such they offer some insight to those hoping to initiate and maintain sponsorship agreements. All have yet to be empirically verified within the context of sport sponsorship, however, so they may also be used to guide research efforts. They suggest that partners choose sponsorship opportunities that offer the most valued rewards with the greatest probability of success. It is suggested that past successes may dictate future sponsorship decisions. Further, multiple-reward options may be most successful in encouraging subsequent contributions. Although this discussion takes place in the context of sport sponsorship, both the theoretical perspective and propositions are relevant to a broad spectrum of sponsorship settings.

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