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Non-Payment of Prize Money at Chattahoochee River BBQ Competition

rtboswell

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We got a call on Monday morning from one of the comp organizers that our checks would bounce if we cashed them. Supposedly someone from the company withdrew money from their bank account without authorization. I'm not buying it. At least we did get a call saying not to cash the checks. That's the short version.

Here's the long version and general discussion of this issue. The festival moved locations at the last minute and ended up putting on the concert associated with it for free with some mid-level country music talent. There is no way they made any money on this event and in fact they probably lost a large sum. Sadly if KCBS had done their homework about Celeb Scene (there are lawsuits against this company that were easily found with a google search) then they may not have sanctioned the comp. As is, those of us who won money may never see it. It is early in the game in terms of the non-payment BUT with the situation as it is I would be shocked if they come up with money to pay for the production company, bands, and the KCBS prize money. This was not a minor event.

KCBS gets them to sign a piece of paper guaranteeing the payouts but what does it matter if KCBS doesn't do anything but call them and tell them they need to pay us? That piece of paper is worthless. There needs to be some sort of real guarantee that the money is actually there to pay teams; this is the third instance within less than a year of organizers not paying teams (see the thread on the comp in PA and the Music City Fest in Nashville, TN)

In my mind the responsibility for non-payment falls to KCBS as well as the company/organizer, in this case Celeb Scene, because we as competitors compete in good faith that KCBS has properly vetted the people organizing a competition. This includes the aforementioned form. I guess the KCBS' sanctioning of a contest doesn't really mean anything in relation to the prize money.

In past posts about this issue it been said that it wouldn't be good for KCBS to pay the prize money and then take legal action because it would set a precedent for non-payment by organizers. Well, I think the opposite precedent has been set: KCBS has shown that it doesn't matter if you pay the teams that cook in their sanctioned contests by not only their lack of meaningful action in past cases, but even more so by the fact that they have not changed the bylaws governing the sanctioning of comps.
 
Sorry you got stiffed.

Agree completely with your KCBS statements. I think this is a MAJOR failing of the organization and should be addressed.

The precedent that they are setting by non-action is a danger to the entire future of KCBS. What happens when no one signs up for the competitions?
 
I really dont think that this is a KCBS issue. I dont blame them at all for this. They could do more to insure the prize money, but at the end of the day KCBS is responsible for the scoring and that part was fine.

This is the first time that this has happened to me, but it was always a possibility with this contest in particular.

I think that you are right that there is very little chance of any of the teams getting paid, other than those paid cash at the awards.
 
I think the inaction is due to a lack of protocols dealing with this. As I have seen it this wasn't an issue in the past. Only recently has this surfaced. I know one team from my region had to sue a contest as well as a contest last year in the Midwest where they announced day of turn ins there was no money.

The KCBS does field suggestions and this may be the time to say something. Maybe a personal guarantee or an escrow account for the entry fees to be deposited straight away. This way KCBS has a guarantee before the contest goes off. Maybe the organizers need to under estimate their expected prize pools to assure payment. Gone are the days of allowing organizers to self police I think. Seems we need some protocols in place to assure the event isn't broke when the awards come around.
 
I really dont think that this is a KCBS issue. I dont blame them at all for this. They could do more to insure the prize money, but at the end of the day KCBS is responsible for the scoring and that part was fine.

Really? Then why does KCBS post this on their website?
"
To sanction or not to sanction?
The benefits of having a sanctioned BBQ contest are numerous. The Kansas City Barbeque Society (KCBS) is the world's largest organization of barbeque and grilling enthusiasts. KCBS sanctions over 400 contests across the U.S. annually.
A sanctioned contest offers the organizer:
  • (1) Integrity,
  • (2) Experience,
  • (3) A built in base of cookers and judges, and
  • (4) A support system of other organizers and members.
For the teams, it offers the assurance that a contest will be conducted in a professional manner, the prize monies will be awarded as advertised, and that the rules will be followed. Some events start off non-sanctioned and work toward sanction. Generally, if you start off as a KCBS sanctioned event your contest will run smoother, have more trust from the teams, and have a higher success rate. A non-sanctioned event is not highly regarded, nor supported by teams if they are not aligned with a proven entity. However sanctioning alone cannot guaranty the number of teams competing or the success of your event."
 
"...the prize monies will be awarded as advertised,..."

Well, that's problematic. I didn't realize that was in there.

Eric
 
There is a solution, and that is that KCBS can require first year organizers to show that they have the prize money in an escrow account 30 days prior to the event date.

Doing this will prevent some start up organizers from seeking KCBS sanctioning, but that is the price for guaranteed payouts.
 
Thinking further on this...

If KCBS could offer an escrow service to organizers this would be very helpful for making the process less daunting to the organizer. Of course the only way to totally guarantee that the money would make it from escrow to the winners would be if KCBS did the disbursement.

Lot's of angles to think about when setting up such a system, so much for the Board to consider. As cooks, we must look out for ourselves by being careful about where we choose to compete. There are usually warning signs that something isn't right, as was the case here.

My personal rule: If something seems hinky about an event, wait until it proves up first and don't enter until next year.
 
My personal rule: If something seems hinky about an event, wait until it proves up first and don't enter until next year.

Totally agree: problem is they had my money way before there were evident warning signs. Remember they didn't move venues until just after the first of July. I signed up in early June.

A fellow competitor that withdrew from the competition was told he would get his money back, but that won't happen either if there isn't money in the bank will it?
 
The real solution is for KCBS to back up what they advertise on their website. It clearly says that BBQ teams can be assured (that if an event is KCBS sanctioned) that it will be conducted in a professional manner, THE PRIZE MONIES WILL BE AWARDED AS ADVERTISED, and that the rules will be followed.

I'm not sure about you all but when someone assures me they will do something but does not follow through then there is a problem!
 
Really? Then why does KCBS post this on their website?
"
To sanction or not to sanction?
The benefits of having a sanctioned BBQ contest are numerous. The Kansas City Barbeque Society (KCBS) is the world's largest organization of barbeque and grilling enthusiasts. KCBS sanctions over 400 contests across the U.S. annually.
A sanctioned contest offers the organizer:
  • (1) Integrity,
  • (2) Experience,
  • (3) A built in base of cookers and judges, and
  • (4) A support system of other organizers and members.
For the teams, it offers the assurance that a contest will be conducted in a professional manner, the prize monies will be awarded as advertised, and that the rules will be followed. Some events start off non-sanctioned and work toward sanction. Generally, if you start off as a KCBS sanctioned event your contest will run smoother, have more trust from the teams, and have a higher success rate. A non-sanctioned event is not highly regarded, nor supported by teams if they are not aligned with a proven entity. However sanctioning alone cannot guaranty the number of teams competing or the success of your event."

I am not going to hold my breath waiting on KCBS to send me the prize money.
 
Thinking further on this...

If KCBS could offer an escrow service to organizers this would be very helpful for making the process less daunting to the organizer. Of course the only way to totally guarantee that the money would make it from escrow to the winners would be if KCBS did the disbursement.

Lot's of angles to think about when setting up such a system, so much for the Board to consider. As cooks, we must look out for ourselves by being careful about where we choose to compete. There are usually warning signs that something isn't right, as was the case here.

My personal rule: If something seems hinky about an event, wait until it proves up first and don't enter until next year.



Gowan may be on to something here. Over the years we have seen a few events like this but like he said, there are usually warning signs. Running event like this one is not an easy under taking and is a lot more expensive than most folks think. It is also a lot of work that requires the passion to do it. Money is tough to get for events, but prize money should be secured long before the awards are given out. Required escrow would sure weed out any fly by night organizers and protect all the cooks. We put prize money in escrow 90 days out here in Cumming to do just that. I have some other event I run that do not but for them prize money is not an issue. I would be 100% supportive of required escrow for prize money.
 
I am not going to hold my breath waiting on KCBS to send me the prize money.

The sad thing is that I agree with you!

True but the threat of a lawsuit may light a fire under their ass. God knows I don't have to worry about not getting my prize money since I'd have to place first but it that happened to me, KCBS would be hearing it.
 
Totally agree: problem is they had my money way before there were evident warning signs. Remember they didn't move venues until just after the first of July. I signed up in early June.

A fellow competitor that withdrew from the competition was told he would get his money back, but that won't happen either if there isn't money in the bank will it?

I have been fairly quiet about all of this because I wanted to give it a day or two and see how it all plays out, but we receivedthe same story Monday morning, and Randy knows that we are behind him 100% with whatever direction he wants to push this issue. We are not out nearly as much money as he is, but we were written a bad check nonetheless and something needs to be done to better protect the teams.

We were in Michigan for the 4th of July when they called about the venue change, and until then, besides being a first year event, there were no red flags that this would happen. After the move, Randy and I discussed the uncertainty of this event a lot, and we should have followed our guts, but we probably would have never received any entry fees back either.

I'm very much in the club that KCBS needs to change their bylaws to better protect the teams, but I am not an organizer, so I will default to people like Gowan and Randall on ideas of how to handle this.
 
If KCBS does nothing this will happen again and again. I would think that at this point their integrity is at stake as a sanctioning body unless they address this issue. You can't put your stamp of approval on a contest and then bury your head in the sand when it goes wonky.

This sucks for everyone involved
 
The solution sounds pretty simple to me. Number one if KCBS sanctions the event, then their integrity is on the line as a sanctioning body.

KCBS should buy insurance to cover the possibility of non payment byt the organizer. It would be pretty inexpensive and would protect the integrity of both KCBS and the sport in general.

Problem solved, quick n easy.
 
KCBS should never state on their website anything about giving assurances. That's a legal nightmare, and if I were them, I'd take that down immediately since the reality is that no way could they afford to financially indemnify any non-paying organizer. If they did that, reality is everyone's dues would go up 4 fold and cost to sanction a contest would dramatically increase.

As much as I'd like to sit back and say that they should pay the payout, they really shouldn't. It does none of us any good to "punish" KCBS by making them pay. I think we'd all be better served by helping the organization change its practices and specifically offering up suggestions as to how to conduct business going forward. I wouldn't be opposed however, to them stepping forward and at the least making the entrants who got calls whole on their entry fees.

I think an escrow system works but let's face it, many contest organizers aren't exactly flush with cash to allow them to park it into an escrow account. To make that a mandatory requirement may cut down on the number of contests. Is that what we want?

Also, personal guarantees don't work - litigation and trying to enforce the guarantee usually costs above the contest purse for a dubious successful outcome.

My recommendation is this - I think KCBS should disclose to the contest entrants whether amounts are going to be held in escrow or not, or if the contest organizer has some sort of letter of credit etc. that would serve as a solid guarantee of funds being available to distribute. This would be disclosed on the KCBS contest page as a "gold ribbon" event or something like that. To the extent that the event is not a gold ribbon event, KCBS also discloses this fact and as participants go, caveat emptor (buyer beware). That way, entrants can still choose to enter the event but knowing that there is a fairly solid risk of not getting paid, but allowing those newer contest organizers to run an event and make good on their promises. If they don't pay, then they should be banned for life from having any association with KCBS or other state sanctioning bodies due to their own stupidity.
 
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