"A bid which banned alcohol advertising wouldn't even get off the ground," Snedden said. "When you put your hand up for a major event, one of those rules is the potential host cannot dictate who can sponsor the event.
"If the New Zealand Rugby Union had said 'sorry, no beer sponsor,' for the 2011 Rugby World Cup, we wouldn't have had a winning bid, we'd have had a non-compliant one."
Snedden's view is backed by Peter Miskimmin, chief executive of Crown entity Sport New Zealand.
"If all taps were turned off, excluding alcohol sponsors would make New Zealand hosting bids non-competitive," Miskimmin said.
The Government has spent more than six years wrestling with measures to fight growing disquiet over problems including youth drinking, increasing booze outlets, health concerns from doctors and difficulties faced every weekend by frontline police.
A Law Commission review into alcohol-related harm in 2010 made more than 150 recommendations - many of which have since been adopted.
A Sport Forum report last year, headed by businessman and former rugby league coach Graham Lowe, recommended a total ban on alcohol sponsorship. That prompted the Sport NZ report, obtained by the Herald on Sunday, which declared alcohol sponsorship is worth $21.3m a year.
Minister of Justice Amy Adams, whose ministry is leading the alcohol review, was not available for comment last night.
A spokesman said the reports raised questions around the feasibility and impact of a ban. "These issues will need to be addressed before ministers can properly consider the recommendations," she said.