This is a huge problem and I completely agree. Rewards shouldn't be automatic, they should be left the way they are. However a new pack - a 'participation pack' should be introduced. So say for second place you would get 2 legendary, 4 hero, 4 elite and 'X' amount of participation packs equaling the number of participants who wouldn't get any of the other packs. Even if they only contained 2 scrolls I think it would make people want to take part more and enjoy it more without having any ramifications on money spent by players - if anything it may encourage more spending - as said before.