I think your scenario is a bit of a different animal, Lyn.
I get what you're saying here, but it seems your example was an
error on the TD's part.
That said, the TD (in my opinion) in your example should have A) given you the option, and/or B) given the "late" player (prepaid or not) either his money back or left him on the one-loss side.
And unless the "Late Prepaid Player" called the TD to let him know that they were running late (in which case the TD would have/could have 'postponed' your match with him), then the LPP is... quite frankly... LATE.
If that's the case, then the LPP should be on time if he wants to play his first match.
To try and align your example with the OP's a bit more:
What if (instead of the prepaid player being late), you had played said prepaid player and beaten him/her ? And then that player chose to go to the TD or promoter, who then suggested that you play a rematch ?
I think the question posed such as this is more in line with what the OP has presented...
Mickey <---