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I agree with pseudonymous, what other business would someone run a contest for to receive work, and then the prize is far below market value for designers.
"One grand prize winner receives a $200 licensing fee–"
So it's a request for spec work with a $500 "prize" to the lucky winner. Gotta love the respect being shown to creatives there.
Perhaps they should pay the performers on the same schedule: everyone shows up for free, the best band gets a prize, and the others get the warm fuzzy feeling of having made an effort.
Whose design is this? It's awesome – artist deserves some cred!