is anyone sponsored ? and how does that work?

I saw a book on the subject once. Check BN or Amazon

good article on sponsorship in the Febuary 2006 Grass Roots Motorsports.

I've worked with several parts suppliers and service providers and arranged discounts for "advertising" space on my car. The tire store even asked me to display my car for a weekend sale to draw in the street traffic. In return I get my Avons mounted and balance for $20 whenever I get a new set. I welcome any discounts I can get!

Doesn't pay for my car or expendibles by any means but is fun having the sponsor names on my car (windshield banner, rocker panels, fenders, etc.) and is a win-win relationship.

The books mentioned above are good.

I was sponsered in RC car racing for years. Now I work for a race team (real cars) thats sponsered. Being sponsered is kinda a racket. There is no real sponsership anymore, like "we give you X amount of dollars for this decal on your car, and Y amount of dollars if you win". All our sponsers on our Grand Am team supply parts or have helped the service side of our shop in some way. For instance, Einzett is a big sponser. Yes, they give us cashola, but they also supply the service side of the shop with cleaning products for cars that go out. Make sense? Like "we agree to buy all our cleaning products from you spending X dollars if you give us Y dollars".

Another example. The company that owns the Home Depot nascar also owns one of the largest lumber companies in the world. The agreement is; if Home Depot gives them millions of dollars for the race car, the lumber company will buy all their tools for all their thousands of employees at Home Depot.