Just talking letter of the law, it seems that @flynnibus interpretation is legit. Players agreeing on a pot chop is a collaboration by players to affect the outcome of the competition. (For most competitions, the prize schedule is an integral part of the rules of the competition, and really the headline… realistically, I think most players, when considering to attend a competition, will look at cost of entry and prize pool.)
If TD’s at an event know that such collaboration is going on, they should at least yellow-card the players, according to this rule. Or simply remove this rule from the ruleset that’s in force at the event.