Canadian Tires has recently taken over as MLSE sports team sponsor, which represents a variety of Canadian sporting properties. Tim Leiweke (CEO of MLSE), chose Canadian Tires over US based retailers as he felt it would be the best option for representing Canada. This falls under managerial accounting, which can be defined as “the provision of financial data and advice to a company for use in the organization and development of its business”.

I feel that this was a great decision for Canadian Tires to take on the sponsorship as it will allow for increased publicity and support from the Canadian public. The fact that Canadian Tires won the sponsorship role over even bigger competitors represents a great victory. This was clearly a strategic move by Canadian Tires as it will be able to differentiate its products from other sports retailers, and they will also be able to place their logos at other MLSE owned outlets. This clearly benefits both parties as Canadian Tires also clearly has the money to give to MLSE over the next 10 years (owns huge portion of market share in Sports industry), unlike Rona (old sponsorship). Thus, it is clear that this managerial decision will be beneficial as combining two big names in the sports industry should be able to dominate market share.

Source: http://www.theglobeandmail.com/report-on-business/industry-news/marketing/canadian-tire-takes-over-as-mlse-sports-team-sponsor/article14207122/comments/