No, lol. Please look at the formulae themselves. They reflect my thought process pretty well. The system is designed to be flexible (champion's bonus can be adjusted etc).
I'm sure that you have the right amounts in mind, and the system does work fine, it's just the explanation is either incorrect or unclear.
If each game is worth +25$ for the winner and -25$ for the loser, then at 5-4 the winner should get +25$ and the loser -25$. With the champions bonus, that's 200$ for the winner and 75$ for the loser, missing 25$. (Or another way, because one player gains and one player loses, a game played is neutral for the total money payed out. So the total pool would be 2*100+75 = 275)
You can either say that each player starts with 125$ and champion bonus is 50$ as SiFly suggested (or in general terms, make the champion's bonus 2/(n+3) and the start amount (n+1)/2). Then in the 5-4 situation the winner gets 125+25+50=200 and the loser 125-25=100
OR you just say that each won game is +25$ for the winner and any games not played (in a 5-0, 5-1 etc.) are counted towards the winner. So again in the 5-4 situations it's 5*25+75=200 for the winner and 4*25=100 for the loser.