A simple suggestion for your divisional problem.
Offer a high (open) division with the larger cash award and then offer a low (beginner) division with some much smaller prizes award. I would even make the prizes low enough so that if you win you still dont break even for the entry and paint. (example 1st gets 5 Jt flex 8 goggles and 10 pods, etc for other places but even less.)
This way you dont make it attractive for a team to sandbag and those teams that are more entry level can still play an event against similar competition.
This only works if you keep the entry prices the same for both divisions.
edit....It looks like you are trying that with your 3 man so it would be same for 5 man. If only 4-5 teams play the low division let them play each other twice no finals they should be happy.
We run 3 man events and have 3-4 divisions per event with prizes for every team that plays and it works pretty well.
Just food for thought good luck with your events!! We are looking for some events in Ohio to play.
Action Park Paintball