Should Members of a Club Sponsoring a Car Show Be Eligible for Awards

About 35 years ago, I did a body off restoration of a 65 Corvette Convertible. I took it to a car show . I thought I was a lock for first place, since the other two were very 'rough around the edges'. Turns out that the other two Vettes were owned by club members, and I got third place. It was my first car show, and I was very disappointed.

The Mopar club we have in Sacramento.....members cars are not eligible for judged competition.
On the topic you mentioned about the Corvette....
I've seen that happen and I have been on the losing end of it. One year in Petaluma CA, I was in the B body Dodge category and was sure that I'd score something. Three of the four cars that got trophies were owned by club members but one was clearly nicer than mine in every way. Even the "Honorable Mention" car was green with a black engine bay. The 1st was a properly restored '70 Charger. 2nd and 3rd were cars that were nice drivers but had mediocre paint jobs.

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I drove out having learned a lesson on car show member back scratching and favoritism. From there on, I dismissed the expectation of coming home with anything but memories and pictures.