Ok I think there are 2 differen scenarios to look a here.
1. Player is running late and contacts cardroom to advise them prior to the start of the tournament. IMO the chips should not be put into play until the player arrives, so long as this is before the end of the late registration/re-entry/alternate period. If the player does not arrive by end of late reg period a full refund should be made.
2. Player does not arrive or do not advise cardroom that they will be late prior to start of yhe tournament. In this scenario the players chips should be in play and blinded out fully. At the end of the day the player has paid for the chips and they always have value whilst they are in the tournament. Who is to say that the player can"t turn up 3 hours late? He could have half start stack and still easily go on to win the tournament. In short the player has paid his money and therefore "owns" his equity in the tournament. The argument about creating a dynamic is moot, as poker players we should be able to adapt to different situations and this is just another situation.
I get what Gordon is saying here but I do think that he"s being a little unrealistic.
To my mind it comes down to when did I pay my money?
Pre-reg/Pre-payIf my money is on the table, as it were, then GiMac"s second paragraph applies. My chips are on the table, in play, and they"re there to the sticky end.
Late Reg / Re-entry / AlternateI haven"t paid any money so I have no equity and so my chips should not be on the table (or least not in play).
If, as late running player, i can negotiate any sort of refund then that"s a bonus but it certainly shouldn"t be a given.