I'll quote what I said over on MTGS, where I never received a response.
Sanctioned, unsanctioned, proxies?
Also, 50% payout is thoroughly lame. If you get all 40 players, that's $1000 taken in from the players. $500 of that would go to the store and $500 would go to the players, with only $250 going to first place. That's a $25 entry fee with a chance to win $250 at a 40 player tournament (oh, and the $150 and $100 second and third place prizes). Those aren't exactly what I call great odds.
Honestly, these players should just take their money and rent their own venue if you're going to take that much of the entry fees. I'm being completely serious.
50% payout? Really? If this had a fair payout, I would have seriously considered coming to this event.