Sport sponsorship was one of the major funding sources for a sport event. Good sponsorship strategy can create a win-win situation for both sport organizations and sponsors. However, there is a chance to cause damage to both sides if incorrectly manipulated. This study was to discuss the dispute of liquor distributors sponsoring 2009 Intercollegiate Athletic Games from the point of view of legislation and limitation regarding with sponsorship by tobacco and alcohol industries. It is suggested that this sponsor’s sponsoring approach to the sport event can be done more delicately to avoid any potential disputes as long as there is no legal concerns. However, advertising and sponsorship provided by the tobacco and alcohol industries are more and more unwelcome and banned in some sport events worldwide. When facing with such disputes, the discussion or seminars held by scholars and experts would be more recommended than resort to moral or social sentiments. It is also easier to draw the attention of the public and will be more meaningful if it can revoke their focus and discussion on subjects related to sports sponsorship.