Just one correction on the above. "Typically, these tournaments will guarantee prizes for everyone who enters." -> From my experience, prizes areNOT guaranteed just for entering. You still have to win at least one match in the tournament (and therefore, actually compete). A couple of times I missed the deadline to enter my line-up, and therefore lost all matches and did NOT win anything as a result, even if number of participants was smaller than number of rewarded positions.
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You have to at least submit your teams, if you don't you don't win, but submitting any team and not winning still counts, but it has been a long time since I actually managed to lose every single game, so it might have changed.
In tournaments you have to win or draw 1 game to be eligible for rewards.
If you lose all your games you get nothing.
In brawls if you put matches in you get sps even if you lose all your games.