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I've always saw a Chess Congress as a whole - not separate sections with self supporting prize funds.
So why not change to one big Open where (perhaps no one will object to) the majority of funds going to 1st, 2nd, 3rd and some Grading prizes (which have to be less than the first three!) matching the Major, Minor sections.
Next we will be arguing over where the division of sections (major, minor, etc) should be! If the sections were altered someone could enter a lower tournament and have a better chance of prize money...!
Personally, I would find it embarrassing if say I won a Major and collected more prize money that someone winning the Open section.
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If there was no money involved then I would be in support of the "one big event" idea.
Remember though that for a competition to be competitive it requires everyone to have at least a chance of doing well if not winning. Otherwise it becomes a bit of a procession and demoralising for those losing most of the time.
If you are asking competitors to contribute over and above the basic costs of staging the event then you need to provide them with a chance of a return.
This is where sections within an event are a great idea. There is more doubt as to the eventual result, individual games are closer and more exciting and those competing can gain a greater sense of achievement.
An original point in this thread was the sense of entitlement that some players have. In my opinion these players need to think about contributing more to grassroots chess rather than just taking from it.
Everyone should pay an entry fee regardless of ability, unless organisers agree with them that they provide free coaching as part of a deal.
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What I don't understand is why a 1499 regularly has chances to win a congress, while a 1950 ALWAYS has to play the Open and will very rarely win.
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I know that Andrew and others will disagree with me, but I have a (completely subjective and unprovable) belief that prize funds should be the same across all sections and that there should be as few cross-subsidies as possible.
That's the way the new 4NCL FIDE rated congresses are set up. Prize money differs across the divisions in the main 4NCL, but entry fees also differ between divisions (although I accept that mathematically it's not an entirely equitable split between entry fees and prize money).
An inadequate response to Clement's point is that: (a) grading prizes help to mitigate that effect to some degree; (b) life is inherently unfair, and chess as a subset of life is no different.
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How does any of that answer Clement's question about players whose grades are right at the top or the bottom of the relevant section? (i.e. the question I was answering when I made my grading prize and "chess, like life, is unfair" comments?)