Just for reference:
The largest single prize I've ever seen is for the winner of the Adepticon Gladiator. This year, it was a FW Reaver Titan (currently about $650). Given Adepticon's relationship w/GW, I doubt they had to pay retail for it. The Gladiator runs 120 people @ $25 each, plus everyone has an Adepticon badge (separate fee, to help cover the space).
The team tournament actually has better prize support (360 people @ $30/each will do that), but distribution across 4-member teams brings each individual's "take" down.
The Gladiator is the only Adepticon event that pre-announces the grand prize.
Dash - you admit to having no knowledge of the costs of running a tournament. So let's ditch that part of the conversation, except as to note that they are much higher than you realize.
Your first problem seems to be one of distribution - given a specific prize "budget," who should it go to? You would like limited distribution to the select few; the organizers have chosen a wider distribution.
I think the organizers' viewpoint is this - conventions do not thrive on prizes given to the few. As it is their convention, they are perfectly entitled to that viewpoint. If you disagree, you need not attend.
Your second problem is one of disclosure. You would like full disclosure; the organizers do not wish to provide you with full disclosure. Understand that tournament organizers often don't have full knowledge of prize support until much closer to the event - sponsors may change, costs may change, some prize support may be contingent upon attendance (a permanently fluid number). If the cost/benefit analysis doesn't work for you without more data, and you can't obtain that data, then walk away.
General point: 40k tournaments are not long enough for a true swiss system to play out - whether you are first or second or third tells you nothing about your relative success vs. the other top 3 finishers; maybe they faced a harder opponent in round 1 than you did, and saved you from having to encounter him in round 2. If you want poker-like payouts, play poker, where the top finishers at least face each other in elimination-style play.
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