Perhaps, because your above statement implies you have knowledge on the topic, you'd be willing to share what that "reason" is.
As far as where the money goes I agree most doesn't go in the LO pockets, it goes in the LO pockets and the corporate coffers.
This league gives back (to its members or the game in general) a minuscule percentage of what they take in compared to the other leagues.
As a former APA L.O. I would be happy to give you my opinion of why it is the largest (by 3x) and most successful amateur pool league in the world. First and foremost, it was never intended to be, and is still not a money league. While APA L.O.'s are allowed to have payback divisions (I did), the huge majority of teams just play for fun, competition, and a possible trip to Vegas, where, if you get there, you made money! The APA is the only league that pays last place.
Second, the handicap system, when allowed to work properly, and with competent scoring by both teams, is a reasonably effective way for players of different abilities to play each other without the better player always winning...which is the opposite idea of the other leagues. They're all about get a ringer/sandbag team together, and dominate locally...and getting your (and your competitor's) money back at the end of the session.
In the APA those monies are paid out too, in the form of prize money during playoffs and other tournaments that the L.O. runs in their area. Some L.O.'s pay out mid-six figure amounts of prize money. It doesn't all go in their pockets...or to the national corporation. Yes there is a 20% slice to APA Corporate. A VERY well organized, hard working L.O. MIGHT clear a maximum of another 20% for themselves. People seem to think that organized leagues run themselves, because of computers, but there is a tremendous amount of legwork needed to be an effective L.O., especially one that is looking out for their players, and constantly looking for new ways to improve and grow their leagues!
Third, the coaching aspect of APA league play allows for the beginner to learn while they play...instead of having to make a mistake, have your teammate tell you what you should have done, and then waiting for that shot to come up again...stalling the learning process. It was the most important factor for me, in deciding to purchase an APA franchise. I've said this before many times, and it is the absolute truth...there was no sandbagging in my league. I didn't allow it. People call BS, but it's true. I had 800 players. Every one on every team had to sign an affadavit every year. Get caught sandbagging and either you're out, or you're a permanent 7, and you just won't get to play as much. It worked...in 4 years of running the league I had to kick two people out...and it wasn't for sandbagging! LOL
Lastly, because it is a league that CATERS to beginners, male and female, it encourages potential poolplayers of any ability to come out and play. That obviously appeals to a lot of people, as the APA is larger than all the other national leagues combined. Is it the best league out there? Who knows...seems that way for lots of people, or they wouldn't keep coming back. APA has it's detractors (many of them will chime in any time APA is mentioned) but overall there are many more times the people that like it, than don't. In 3 decades it has spawned 6-10 other nationally affiliated leagues (BCA, VNEA, TAP, ACS, etc), all of which have their own annual national championships...many in Vegas, but other places too. As a professional instructor I'm in favor of any and all league play, whether it is organized locally or nationally.
I will end with the fact that I could list many things I think the APA could do to improve...but that list would be reasonably long as well. LOL
Edit: Not trying to hijack this NBL thread, just trying to answer the question about the APA.
Scott Lee ~ former APA Rookie League Operator of the Year
2019 PBIA Instructor of the Year
Director, SPF National Pool School Tour