I just read this passage in the "rules and regulations" section of the website
http://www.googlelunarxprize.org/lunar/about-the-prize/rules-and-guidelines:
The competition's grand prize is worth $20 million. To provide an extra incentive for teams to work quickly, the grand prize value will change to $15 million whenever a government-funded mission successfully explores the lunar surface, currently projected to occur in 2013.
Is this new? I seem to remember that the deadlines used to be fixed.
What government-funded mission do they mean? Does NASA have a lander planned for 2013?
The deadlines used to be fixed. See
http://www.parabolicarc.com/2010/08/11/teams-angered-proposed-google-lunar-prizeFor back-story, prior to about six months ago, the Grand prize was scheduled to decrease in magnitude from $20 million to $15 million at the end of 2012, and then end (expire with no payout) at the end of 2014, seven years after the initial announcement. The X-Prize Foundation then decided to arbitrarily changed the rules three years in, and it took them a while longer still to then finish the rule set. I'm not even sure that the rules are really "finished", even today.
So, this ended up being at least a +$5 million rule change for Astrobotic, if they launch as planned in 2013 and succeed, assuming that they could never have launched by 2012.
If they (or SpaceX) encounter delays of some kind, pushing their launch past December 2013 (not hard to imagine), Astrobotic initially would have received $0 from GLXP. Now, they will still potentially be eligible for $20 million, and it begins to look like a +$15 to +$20 million rules change for them (or any other team that never stood a chance of succeeding by 2014).
You can imagine how difficult fundraising in late 2007 (when the prize was announced) might have been, with a hard 2012/2014 cutoff, for a team with a credible 5-to-6-year timetable to fund, design, build, launch, test, and operate the system.
Keep in mind that this would have been just after the first, fairly catestrophic test of Falcon 1 on Omelek (bleeding fuel through a rusty B-nut) followed by a failure of the stage separation on the second test (when fuel slosh at altitude was ignored).
Making a 5-year gamble on an unproven Falcon 1, much less a (then paper) Falcon 9, much less a (still paper) stretched Falcon 1E, would have been a hard sell to investors looking to actually win the prize. The next-closest-priced launch option, for realistically-sized systems, would have been a Russian Dnepr at $18 million - $25 million, significantly decreasing the payout-to-investment ratio, and getting worse every month with the sinking dollar.
Teams that would have stood a realistic chance at success (and there have never been very many) but requiring a payout exceeding launch and fabrication costs would likely not have even competed at all under those terms, particularly as the rules changes concerning scope needed to win kept coming all through 2008, with no hint of permanent resolution any time soon. Only teams with significant funding that was independent of success or failure (such as guaranteed academic funding from CMU, PR deals, a wealthy donor/benefactor, etc.) would have been able to even *get* to the rules changes in August 2010.
Maybe an adroit investor could have predicted the rules change when it became pretty clear that no team could actually claim the prize by 2012, or maybe the GLXP/XPF people wanted teams who would build better business plans and/or be willing to endure a likely net loss. Maybe Larry and Sergey will do whatever it takes to prevent the prize(s) from expiring without being claimed. It's hard to know.
Personally, I wish they'd published a complete, hard rule set to begin with, and stuck to it. I think changing the rules halfway through is a poor way to run a contest, even one of this kind, and makes me wonder what the other X-Prize competitors have endured.