What is "prize money"

Prize \Prize\ (pr[imac]z), n. [F. prise a seizing, hold, grasp, fr. pris, p. p. of prendre to take, L. prendere, prehendere; in some senses, as 2 (b), either from, or influenced by, F. prix price. See Prison, Prehensile, and cf. Pry, and also Price.]

1. That which is taken from another; something captured; a thing seized by force, stratagem, or superior power.

   I will depart my pris, or my prey, by deliberation.
   --Chaucer.

   His own prize, Whom formerly he had in battle won.
   --Spenser.

2. Hence, specifically;

   1. (Law) Anything captured by a belligerent using the rights of war; esp., property captured at sea in virtue of the rights of war, as a vessel.
      --Kent.
      --Brande & C.

   2. An honor or reward striven for in a competitive contest; anything offered to be competed for, or as an inducement to, or reward of, effort.

      I'll never wrestle for prize more.
      --Shak.

      I fought and conquered, yet have lost the prize.
      --Dryden.

   3. That which may be won by chance, as in a lottery.

3. Anything worth striving for; a valuable possession held or in prospect.

   I press toward the mark for the prize of the high calling of God in Christ Jesus.
   --Phil. iii. 1

4. 4. A contest for a reward; competition. [Obs.]
   --Shak.

5. A lever; a pry; also, the hold of a lever. [Written also prise.]

   Prize court, a court having jurisdiction of all captures made in war on the high seas.
   --Bouvier.

   Prize fight, an exhibition contest, esp. one of pugilists, for a stake or wager.

   Prize fighter, one who fights publicly for a reward; -- applied esp. to a professional boxer or pugilist.
   --Pope.

   Prize fighting, fighting, especially boxing, in public for a reward or wager.

   Prize master, an officer put in charge or command of a captured vessel.

   Prize medal, a medal given as a prize.

   Prize money, a dividend from the proceeds of a captured vessel, etc., paid to the captors.

   Prize ring, the ring or inclosure for a prize fight; the system and practice of prize fighting.

   To make prize of, to capture.
   --Hawthorne.

n. any money given as a prize

Prize money has a distinct meaning in warfare, especially naval warfare, where it was a monetary reward paid out under prize law to the crew of a ship for capturing or sinking an enemy vessel. The claims for the bounty are usually heard in a Prize Court. This article covers the arrangements of the British Royal Navy, but similar arrangements were used in the navies of other nations, and existed in the British Army and other armies, especially when a city had been taken by storm.