in the circuit events yes I think that was the case for at least somebody. I can't think of a poker player who would pass up a chance for 1 million even if he doesn't like the situation.

I don't think there is a need for a freeroll to bring in sponsorship money.
With the obvious age range of poker these days advertisers would be really stupid not to be in the game. Sponsoring poker has to be a no brainer even for major corporations. *if of course they are targeting that age range*

edit But if sponsorships would actually put prize pool money in then it would be good for the long run--but harrah's did promise 2 mil that they never gave. And I think it would be a lot more likely that they would sponsor certain players rather than individual tournaments (since they don't have to put any money in the pool now to officially sponsor tourns)