In 2000, DVAG, a German asset management company, paidMichael Schumacher 5 million for a 10-cm wide space on the front of his cap. A cap that he worewhenever he was in the eyes of the media after winning a Formula 1 championship race, which was andstill is often. Such is his pulling power that his Ferrari team were able to attract an estimated 60 million of sponsorship that included branding space on the rest of his racing attire (Henry,1999). This revenue is clearly important to the running of the team but you do not have to look toofar to realize that to some teams sponsorship income is critical for survival. In recent times boththe Prost and Arrows teams have departed the Formula 1 motor racing scene with financial problems.Such problems in Formula 1 motor race events are ongoing and a constant source of concern about there-shaping of an events industry that is worth 1.7 billion in the UK alone (Motorsport IndustryAssociation, 2003).

Sports sponsorship is now a highly developed communications tool with much of the spendingbeing focused on sports events. The market is in growth but the signs are that it is maturing withon the one hand increased revenue and on the other fewer new deals (Mintel, 2000). Indeed whilstthe sports sponsorship sector is the most sophisticated and developed, other sectors are also ingrowth. The arts, music, broadcast, cause and community related, and education sectors are alldeveloping and with more communication choices like these available there are key implications forthe...