The point was that its difficult to know how much money to give out and very easy to completely reverse the momentum and skew the game in the other direction. Mookie, for example, suggested giving out 800 to the loser of the pistol round. Waiting until the 5th round is too late, as the losing team is already getting more money per round than the winning team. By the time the 5th loss rolls around, more often than not, the game is actually close ... e.g. almost everyone on both sides is dying. Maybe its 3 vs 1 as the round ends. In this situation, giving out money to one team doesn't balance things. The winning side doesn't necessarily have much money, and now the losing side has their 3400 they get for losing 5 consecutive rounds + whatever money you gave them. Now, we wrongfully hand out money, and after a round or two of turn around the winning team is tapped out of money and all you've done is turn it upside down.
I believe what you want to do is, give out less money earlier, like for example, after the 2nd or 3rd loss give enough money for a complete buy for the losing team. OR: hand out equal money to both sides
Loss 1 $1,400
Lose 2 in a row $1,900 (1400 + 500)
Lose 3 in a row $2,400 (1900 + 500)
Lose 4 in a row $2,900 (2400 + 500)
Lose 5 in a row $3,400 (2900 + 500)
Capped @ $3,400