One of the most common questions I get from new tournament organizers in Smash Bros, Pokken Tournament, and some FGC is “How do I setup payouts? Is there a set %? Everything is different I’m a bit confused.”
First off, a few things to consider:
1. This is my opinion and not the only way to have it setup, but hopefully this helps.
2. Always have your payout procedure & percentages in writing when posting the event to various outlets.
3. Make sure you ensure that 1st place doesn’t get shafted; hard work should be rewarded.
4. The talent pool of a tournament shouldn’t affect your payouts mid tournament, you should set it in advance and prepare for any number of people inbound.
5. If there’s a pot bonus, make sure you indicate how it’s being distributed.
6. If you change anything (which I don’t recommend if you are have a large number of people payed & signed up), make sure you let people know via all means of communication tools you’re equipped with (Facebook, Twitter, YouTube, blog, Vine, Snapchat, or whatever you can use to get the message out there).
Now to my recommendations for percentages based on number of entrants:
Less than 32 players; Top 3
1st 60%
2nd 30%
3rd 10%
[Pretty standard local payout]
33 to 128 players; Top 4
1st 55%
2nd 27%
3rd 13%
4th 5%
129 to 512 players; Top 8
1st 50%
2nd 25%
3rd 12%
4th 7%
5th 2% & 2%
7th 1% & 1%
512+ players; Top 16
1st 50%
2nd 25%
3rd 12%
4th 7%
5th 2% & 2%
7th 1% & 1%
9th venue fee + entry fee (x4)
13th venue fee (x4)
[After taking out the 9th & 13th payouts, divide up the rest of top 8 with remaining funds]
You’re more than welcome to adjust & use whatever payout you choose. I hope this helps people as a blueprint.
Best,
Bear
Bassem [Bear] Dahdouh: Esports Event Manager & Tournament Director 
Then we have Final Round’s WiiU payout scheme:
202 players, $500 pot bonus; Top 8 paid
1st 30%
2nd 20%
3rd 15%
4th 10%
5th 7.5%
7th 5%
Definitely spreads the wealth across the top 8 more.
I’m wondering why this is seen as such a bad thing though?
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It doesn’t reward performance. Put yourself in the shoes of the top 3. You put in the most work, games, sets, and went through a gauntlet of crowds, boos, online salt, and in general performing well enough to best the rest below 3rd. I personally believe to reward hard work.
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