If we were talking about running a $1500 monthly event with a different streamer each month and all community funded, sure. you can get away with little overhead (just graphics and Admin). In fact, the community can fund those 2 once and then use Matcherino to actually pool the money for the prize pool. That is what i do with The Warchief Club.[...]
But at some point, you are gonna cross a threshold of how much people are willing to do for free (which is a good thing, they deserve to be paid for the work, even if they also get "exposure"). I am sure there are casters willing to hop in for like 4-6 hours for a tournament made by the community for the community. But when you get up to $10k prizes things are gonna get a bit awkward, especially if the money is being handled by 1-3 people.
Community funding is awesome, but it's limited to either small regular events, or where the event would happen, either way (meaning funding has already been secured for production) and people are just helping make it bigger (like in hidden cup)