Have to say I agree with jennyrusks, I don't think there is any risk to any real designers. As a young developer in college, though I'm not much older now, I made a enough money from doing these hand down jobs. And as jennyrusks said, it gives young people a lot of real world work and depending on the rules of the "competition" you can also add the work to your portfolio.
In fact, I once did a huge job for a very very large multinational based in Kildare, that was one of these handed down jobs. I'm quite proud of that really, but unfortunately I don't think I can get away with putting it on my CV.
So I'm kind of for it as long as it doesn't get out of hand. Which of course it wont because market forces will keep it honest.