We've been over this before, but I'll play the punching bag and deliver the obigatory response. All that I'm about to talk about is referring to small in-house tourneys...
There is a point where it becomes foolish to pay to enter a tournament, if you know you have absolutely no chance to compete at any level. I'm not talking about the phrase "no chance to win", or even "to cash", but I mean no chance to even compete.
If the majority of players that are likely to participate in a tourney are significantly better than me, am I expected to simply come in and donate to the prize fund? Once again, if I know that
I have no chance to compete? Is that what "manning up" means? I could just walk in and give you my money since you're so much better than me, right? Paying my dues, rights of passage?
If you only want the best and strongest people in your tournament (you know, the ones who will "man up"), expect a small field (and resulting small payout). If you want more people to come and donate to the prize fund, they need to see something for their efforts. And by that I mean a chance to compete. If I'm in a tournament where the same handful of much higher level players win all the time, and we beginners get 2-and-outed every week, I'll probably lose interest after a while. If there are enough lower level players playing where I have a chance to win a round or two (even if I have no real chance to "cash") I'm going to have more interest, because I am "competing".
A fine line, to handicap or not. But if you want a bunch of people donating to
your prize fund, you'll have a better chance by making it handicapped. Unless you live in an area populated with a large number of "good" players, and even then
they won't come and compete if everyone is good because
they won't have a good chance "to cash".
Yes, most everyone knows that we will only get better by playing better opponents. Yes, I would gladly "donate" in a tourney with some bigger names, knowing full well that I have no chance. (But I wouldn't do it every week.) If you want me to come and put money in the prize fund, you better make it worthwhile to everyone, not just you guys who aren't swimming in the kiddie pool, or out selling our Girl Scout cookies. (BTW, Samoas are the better choice, IMHO

)
There. Now it's out there, blast away. :smilewinkgrin:
To the OP, I think it's fine for the owner to play, so long as he's rated appropriately and the locals are cool with it. Most everyone that is a "local" knows each others speed, so this really shouldn't be an issue. If he's underhandicapped, the locals should know it, and say something.