We've been competing for 3 years, with 5 or 6 guys contributing at each competition. Some are there to hang out and drink, some are there to compete. 2 of us buy/supply all of the equipment, but everyone splits the cost for each event evenly. We agree that all winnings go towards the next competition. In the rare instance we have a sponsor, we spend the winnings on something for the team, like a cambro or water tank.
It turns out to be $100-$200 per guy per event. the $200 if there is a party for friends friday night. Of course, that $200 doesn't cover the tent we built, the totes we buy, the smokers we build, and all the rest.
To me, the $300 entry is reasonable for the expenses or charity the organizers have. Compared to the rest of the expenses, i think the $250-$300 is reasonable.
The main reason we don't compete more than 3 times a year is the time commitment. We spend a ton of time prepping for these comps, starting 2 weeks out. Plus I always need to take of work the friday before, convince the wife, make sure the kids can stay at grandma's, etc...
We had a hard time finding more than two guys that wanted to compete. once we proposed that guys could sit and drink while we cook and invite their friends to the party, interest went up. And it's turned out that some of the beer drinkers got bit by the bug, and now want to help cook.