To the organizers out there: I’ve always thought that 1st place prizes should be about 10x the advanced EF, but have struggled to figure out how to do it when prizes are based on entries.
Generally, I try to determine what I want my prize fund to be, or what I want to give to 1st place, and then determine what EF will be required for a certain number of players.
Or, I’ll start with what I want an EF to be, and try to determine how many players I’ll need for a certain prize fund, taking care to make sure that 1st place is 10x EF. The problem is that the resultant EF isn’t enough to cover overhead.
As I say, I haven’t been very successful over the years, so I’d like to get other opinions. Let’s say that I want to have an event which will attract, say 60 players. I will need to account for TD fees, Hotel Costs, USCF Fees, etc.
I think that guideline applies to tournaments expected to draw a larger number of players than what you’re getting. Don’t feel obligated to lose money just so you can make the 1st place prize(s) 10 times the entry fee. Pay what you can afford based on the expected number of players.
There is/was a guideline in the Official Rules of Chess that had that 10x suggestion for first place. In reality what you typically see is more like 6x to 4x for first place. Players are not usually expecting the 10x figure and have gotten use to the smaller multipliers.
I never feel obligated to lose money, in fact, I try to make a profit for future events.
I know the guideline is just that: a guideline, but I’d still like to get as close to possible with it, as I believe that’s one of the reasons OTB play is losing players; it takes a lot of money to go to a small tournament, and, imo, there needs to be some monetary incentive there. At least it can be advertised, with the hope that players will come.
I guess the only way to do it would be to make up the difference with organizational funds when the attendance is lower than expected.
And please, I’ve already heard the “I play for fun, not money” testaments, and I don’t buy it. Perhaps it’s true for close-to-home events, and perhaps Title events for the Experts and Masters, but otherwise, no.
Well, with this in mind, what are some thoughts entry fees : first place prizes, and how to get there?
Instead of looking at the first prize, look at what is being paid out in class prizes. Most of the players who will attend are class players who will ignore whatever the first prize is because they know they have little chance at it. Out of self-interest they are going to look to see what their prize potential is going to be.
First, I would figure out all, and I mean all, of my potential expenses including a small profit and deduct it from the projected entry fee money. If the result leaves ideally about 70% of the money, then I look to see how I can apportion class prizes as well as the top prizes equitably. Split the money in half and see if you can make class prizes each of which are 3x to 5x time the entry fee. Anything less is likely to be unattractive to class player and may kill your entries goal. The other half of the money will make up the top prizes at roughly 50% for 1st place, 25% for second, and 15% for third. Many tournaments do not have a third prize or even a second prize. I think that is a mistake as it leads to fewer stronger players wanting to participate. That third prize seems to be important somehow as every strong player thinks that he can win at least third prize if not second or first. Anything left over is added to the profit or put into the class prizes to make them bigger. Overall, I think that the bigger you can make the class prizes, the greater the likelihood that you will exceed your entries goals and also make a bigger profit.
