IMHO, this is bullchit... Prize money is #1 priority and thats what entry fees are for. if i have extra $$ from sponsors, i will ADD that to prizepool. Gate money pays for dumpsters, bands, porta potties, electric, rentals, etc... but the teams money belongs to them. You screw the #1 reason u have a contest, your just making sure its your last year. I know, and im prepared that if my gate comes up short, i may loose my shirt and have to pay out of pocket.. but the teams get the prize pool. Its the cost of doing business.
small claims in PA is up to $8k. If he owes more, going in with a large group would put u over and force u to a different court. Have to keep individual or group claims under 8k.