If a sponsor goes down...
 

...all the freesites using that sponsor are lost ?

I am far to have this problem since I have to start submitting first lol, but it may be one of those things you have to plan right from the beginning. Since it is not allowed to change the freesite, I wonder what is the way to deal with this issue.

I can think of three ways:

1) Link to the sponsor through a php script, and change it later.
This seems ok, but there are other problems like having content
from one sponsor linking to another (unless changing pics and banners
while keeping the rest intact is ok, but I think this will require notifying the LL owner, am I right ? )

2) Pull down the sites (previous notification to LL owners of course)

3) Just forget, keep the sites listed, and build more freesites

I need advices :)

Just make sure you edited site comply to the rules and you should be able to change it without any problems

I think Mateusz's advice is a safe bet too. :D

If youre using paid content then you can have those links point to wherever you want, but if not, I've often wondered what the legality is concerning one sponsor buying out another's content rights... |huh

I've seen one "dead" sponsor come back, but under new ownership... though, interestingly enough, they stopped having an affiliate program. |crazy|