Franchisee Kalpesh Patel has donated £1,000 to provide the kits for Westhoughton Lions under-8s and under-9s teams, with the Bargain Booze name across the front.
Local council chiefs have described the sponsorship as "particularly inappropriate". But Patel told the Bolton News: "The connection with alcohol and sport may be frowned upon by some people but it is important for businesses to pitch in and support positive activities for children.
"We want young people to be involved in activities
and not be on the streets.
Provid ing money like this helps such clubs. I admire the work of Westhoughton Lions and am pleased to support them."
Bargain Booze joint managing director Matthew Hughes said the sponsorship was a local initiative.
"The franchisee has obviously been approached by his local rugby club and
has generously tried to support them
thanks to his local paper his generosity has blown up in his face," he said.
"I t would be a real shame if media hysteria
were to impact on local activities of this nature. Our franchisee is a local businessman supporting his local team, and he's certainly not intending to promote alcohol to an inappropriate age