The pageants operate on several levels
1. as a business for the operators
2. as an opportunity for the contestants to have a great experience and represent their country in their own way (not everybody is a sportsman or entertainer)
3. as a way for countries to see themselves in a forum (tv) which is dominated by American culture.
4. as a way for countries to pormote themselves
Now I am not a big beauty pageant fan, but I recognize that there are benefits - mostly intangible.
My problem with this situation is that the local franchise holder, gained the franchise - competed for it in fact, with an eye toward the business opportunities involvement would bring, whether via direct income, or prestige, referrals etc that would boost his other endeavors. The business plan of this operator appears to be to gain revenue by selling advertising (that is all sponsorship is). The operator was unable to fund his operation, and thus turned to the Government to bail him out in the name of the public good.
I have no problems with that, other than the Government should now be the franchise holder and accrue any benefits gained. as a result.
The distinction between Miss Universe and the World Cup is that the sporting organizations are generally non-profit organizations (whether by design of by skill of management) and are there to oversee the sport and maintain progress. If the T&T curling association cannot sustain itself via new membership and public exposure, it will die.
There may only be 5 sporting associations in T&t who can be self sustaining.
in the end though, it's all down to motive i think. If I use the argument about promoting T&T, I can promote a big fete and then if things looking brown, ask the Gov't for a bailout because it showing on BET which has x million viewers...