I suppose the venue contract was signed a long time ago and could not be undone. Did they have multiple heats on that floor at the same time? If so reducing the size could require a longer time - which might be even more expensive.
Another way is to reduce the number of heats by offering less catagories...
No they run events individually and they dont have novelty events or medalists.
Not sure about the background of it. I understand the difficulties of running a comp but I feel they skimped in the wrong places.