In recent years commercial sponsorship has grown to become commonplace at sporting events, both small and large, and is also prevalent at many cause-related and arts events (Cornwell & Maignan, 1998; Gwinner, 1997; Lardinoit & Derbaix, 2001; Marshall & Cook, 1992; Meenaghan, 2001b; Roy & Cornwell, 2004). It has been estimated that in 2004, sponsorship spending will reach $28 billion worldwide (International Events Group, 2003). Although many organizations appear to have a high level of acceptance and even dependence on sponsorship, a review of the literature suggests that this is not based on sponsorship being a conceptually understood or even theoretically validated business tool. Rather than basing decisions to invest in sponsorship on a sound understanding of its strategic potential, it appears that many organizations have simply followed the trend of adding sponsorship to their marketing programs in an attempt to mirror the apparent success others have reportedly experienced. Undoubtedly, this situation has been perpetuated by researchers failing to provide clear theory-based conceptualizations of sponsorship and its effects.