Sponsorship can be a positive way to promote a business and help local causes, but there is the risk that the sponsored party may do something the sponsoring business does not approve of. Businesses can sponsor sports teams, youth clubs, theater productions, and other public activities.
The advantages of sponsorship include publicity, being associated with a positive activity, and increased sales through the additional promotion. Local businesses can also benefit from sponsorship, as it places them in the public eye as part of the community.
However, disadvantages can arise in sponsorship arrangements when group or team members behave in negative ways. For example, if teams are caught using drugs or youth groups get caught partying during an official function, it can reflect negatively on the business that sponsors the organization.
From large multinational corporations to small local businesses, many companies use sponsorship as a promotion vehicle.