I don't know about how you are describing it but it happens every day. An organization,normally very large, will put on a showcase and pay coaches to come recruit/coach during showcase. The coaches will get paid per kid or a flat fee to help run a practice, do a showcase, or other things. I've never heard of an organization paying a coach to come watch them at a game. If that is happening, the organization is probably not very good and neither is the coach. I know a lot of coaches make side money by doing the showcase stuff or camps or practices.