My events split the pot 50/50 for A&B during tournaments, leagues divided into divisions of eight and top four of each division get payouts from that 40%/30/20/10.

I also give door prizes to random players in the event.

I like how our league does it. We have 3 weeks of qualifying and 1 week of finals. Anybody whom participates in at least 1 week of qualifying gets to play in a finals bracket. Sometimes this means we go down to a D division. Top 8 make A, then 9-16 make B, etc. Payouts are identical for 1st through 4th place in all divisions. It breaks things up some and allows everyone the chance. The key here is NO RESTRICTIONS.

We also have a monthly event where we do 3 hours of match play and then top 4 make A finals and next 4 make B finals. Payout is split 50/50 for A and B. I've heard arguments that promotes sandbagging since there isn't a restriction but I've yet to see it. Maybe when payouts could be in the thousands (like Pinburgh) that's an issue but when your looking at $100 I don't see anyone trying to get in B.

For me it is the restrictions that drive me nuts and have ultimately drawn me out of competitive pinball for the foreseeable future (at least traveling wise). I'm an "A" restricted player. I've never won a major tournament and have only won local league type events periodically. I'm doing well to just qualify these days in the real events but am also told I'm to good to play in B. What drives me nuts is when I do qualify and I place 5th-8th in A then I turn around and see players equally as good (just play in less events) winning B and taking home more than double what I got for finishing higher in the event. Just doesn't feel right to me.

This, to me, is where there is a clearer line between "league play" and "tournament play". For league I say to spread the wealth but for tournaments, those should be more linear. As a player I just don't want to feed a pot that I have no chance in winning because I'm not allowed to play in that bracket and when you start adding restrictions or rules to create more randomness in winners for Tournaments you start to alienate a lot of people real fast (those that are to good for B but may never win as an A player).

always have worthy random give aways that anyone can win, even a beginner. So any money spent is not "dead" money.
that's how we do it.
but, i also believe in payouts should be worthy or travel and time and top performers should be awarded accordingly.
We give away a classic pinball machine for the winner of classics divisions at Richfield rollapalooza which we hold in the summer annual.
the entry fees don't even rise up to the value of the machine, but we still do it.

If you pay too far down the chain, it can make a tourney not worth attending if its not local.
make sure 1st- 4th is hefty enough of worthiness. Smaller percent past that if any (like a 30 player or less event).
The random door prizes will handle anyone else.

Obviously, it pends how large the event is and how large the buy in is. many variables.

Even if you have a charity event with no payouts, you can at least have nice prizes for the players who take their time to travel and donate. You can get prizes from local businesses and pinball companies if you are having a charity event without having to pay out of pocket for the organizer.
Players always deserve it IMO. We always give away tons of random prizes and earned prizes at our events.
We also do not keep money from the pot. We pay out all of the entry fees or if its a rare occasion with fixed payouts, those are mentioned upfront. no guessing games.

Speaking of golf, could you give another set of prizes based on something like a handicap?

Track the average score for each player (over a season or within each tournament) and those at each event who are the highest above their average then split a pot of money. The top players should be less likely to win in this scenario bc they’re more consistent than weaker players.

Lots of details would need to be worked out, but at least everyone would have a shot at winning something at every event.