In some ways, there are events ran that way. But listen, here is the scenario im talking about;
Local club, not well established, wants to run a tournament to raise money for said clubs efforts.
They enlist a local retailer to do payout because they could never raise enough funds to get a good enough inventory for prizes.
These prizes* encourage players to come out, who may for whatever reason not normally show up to a club mini, membership drive, league or w/e. maybe theyre not local, maybe they dont care about club politics, doesnt matter, because a few more people showed up, so it worked.
Win, win, win.
Club wins, retailer wins, participants win by havig a hopefully fun event to play in that was made possible by seperate parties that individually would. Have been able to prosper.