I'm with those saying the $250 should be reclaimed.

On the subject of singing from the sheet, just take a look at some of the inventive,comic,well-constructed songs we have on the 'Cat in response to "song challenges". I'm sure many of these do get public performances (I know some of mine do). As these tend to be responses to topical stories it would be pointless to hold them back until they have been memorised, when the story is no longer topical.