Let me tell you something my friend. If John Schmidt won the tournament, he would expect a piece from the guy who bought him in the Calcutta. That is, if he wasn't already in for half. These "Player Auctions" have been around in pool forever. They are part of the game, just as money games in the backroom are. And the players are willing participants. Have you ever been to the U.S. Open, the biggest tournament in the US? If you have, you know of what I speak.
Whether Calcuttas or Auctions are legal is not the issue here. The issue, as I see it, is for a "professional player" not to show up for his match. How do you think they deal with this on the PGA Tour and the ATP tennis tour? Major fines for a no show, unless it's medical or serious family emergency, and even then they must communicate with the tournament director beforehand. I salute Mike Janis for the stand he has taken. To forfeit a match for no reason other than a golf date is way wrong in a pro tournament. People paid money to see the Pros play. I suspect on the IPT that might be cause for expulsion from the tour.
I like John Schmidt and think he is a great player. How I would handle this situation I'm not sure. Yes it has happened in tournaments I've run and things have gotten ugly sometimes. But I will not second guess Mike Janis judgement in making this call. He has to do what he believes is best for the integrity of his tour.