Since when is having your company name on sporting apparel sold to supporters counted as "free advertising"? Do you not think that the calculation of the sponsorship value includes the potential coverage from merchandise sales (as well as TV coverage from the players during the game, website hits on the clubs site, direct email mentions, billboard behind the interview podium, etc, etc,). Every sponsor pays and the amount they pay is directly calculated in relation to the exposure they are likely to receive for their contribution, regardless of the channel used.
And if Glenn Duncan is laughing, it is because he got his company name associated with a popular sporting fixture but I can guarantee he didn't get it for free.