How do chess tournament sponsors get returns?

I wonder, since chess is a non-spectator sport, how do chess tournament/exhibition sponsors get returns. In majority of chess tournaments there is no fee for spectators. I don't think other than the world championship match is broadcasted in television. Then how do the sponsors get returns?

They treat the expenditure as advertising/public relations.

Exactly. Those who conduct tournaments would be none other than chess coaching academy. They get exposure to their exact targetted audience.

I also find it surprising that money is thrown at GMs. In western europe I think there are a few jobbing GMs who get paid by sponsors. It's difficult to believe that a company's  public relations benfit from chess since 99% + of people don't give a fig.

Perhaps they get sponsored with money that would otherwise go in taxes and they reckon they may as well do something minimally useful for the company's reputation..

I suspect that patronage is due to loving chess as you say, and it reminds us of the old fashioned rich person keeping musicians and artists employed etc

   The prize money for Candidates tournament 2014 is as follows:-

    1st place – €95,000
    2nd place – €88,000
    3rd place – €75,000
    4th place – €55,000
    5th place – €40,000
    6th place – €28,000
    7th place – €22,000
    8th place – €17,000
Apart from the prize money, the sponsors have to organise the tourney, facilities for players(accommodation, food etc).

How can the sponsors get returns from it?

I suppose this is pocket change for some big sponsors - although a lot of money to you and me.

What do you mean by?

Just look at how well Monaco is performing in club leagues, if you doubt that, despite the small size of the country.

Big Tornaments like The Candidates can charge an entrance fee to generate income, but the majority of income in this case will be through advertising ( Companies paying to have their products/name on ads, signs, displays etc.). 

The smaller Tornaments really depend on sponsors who are willing to "take a loss" in order to help this sport.

Additionally, Companies are able to  "expense" advertising costs/expenditures, and may be able to do some easy "creative accounting" to include any such "chess donations" as such...and thus reduce their tax liability...the real net effect for the company may be marginal or zero. So rich sponsors can contribute to the sport they love via one of their companies. 

While there are many ways for individuals/companies to reduce their losses and still support chess, the end product is that chess is not a spectator sport which can attract enough advertising dollars to stand on it's own.

I have no idea how wealthy you are . I'm just guessing you are an ordinary person like myself with average access to wealth. We couldn't afford to sponsor but we would be glad of the money the candidates get

I got it.

Anyhow, I just made a small research on this topic. I found out that the sponsors of chess tournaments/events come under 4 categories.

(i) Chess federations:-They get money from state federations and from players.state chess associations get money from district associations. Conduct tourneys to promote the game.

(ii) Chess academies:-- They conduct tourneys for advertising/public relations. New members join their academies.

(iii) Govt:- The Ministry of Sports in the Govt. conduct chess toruneys.

(iv) Corporate sponsors:- They conduct tourneys to promote the game. Place banner ads, chess merchandise, etc are their advertising/public relations.