There is a huge difference in passing on the cost of the try-out and making a profit off the try-out. Anything more than $20 is just fundraising for the team.
Transparency is a bigger issue. Are there really any open slots on a particular team for a “new” boy. How are the players ranked, by who and what are the results? This is important information. At the very minimum, a parent or player should receive a score card. A ranking compared to the competition. Maybe some take aways on what was done well and what needs to be worked on.
Last year’s players are very often given a boost up the chart, especially for the players on or near the bubble.