Amateur motorsports has a similar concept - often called a "claim rule" or similar - in an attempt to control costs.

Basically, for $x amount, a competitor can buy the winning car (or its engine, or similar). Where $x is the amount the group decides should be a reasonable amount to spend on building a car.

A racer is free to spend more, but if they win too much, somebody will write a check and buy the car.

In theory. In reality, plenty of people have the money to spend $x^2 and risk the loss.