Well, this is a dillemma I guess. Mostly because it sounds like all 8 of the guys are your freinds.
Normally I would say you can't change any rule mid-season. It totally compromises the integrity of the league.
But I guess there can be exceptions. I would ask you if you had the payout clearly defined and in writing in the rules that the whole $320 go to the winner. If so, then why the discussion? a rule is a rule.
If however, you left the rule regarding payout grey.. meaning that it was not written down and was just a loose verbal agreement that the payout should all go to the winner, then maybe it should still be up for discussion. Better to define it clearly now than wait until the end of the season.
I have seen that if there is not a significant payout for second and third, more than half the teams "quit" and go inactive before the end of the season. An exlusive payout to the winner takes the fun factor out of it. You can play for money as your sole motivation, but it's not like this is a big money league at $40 a pop. Freinds, life, and fun have a lot of value, so weigh everything before you take a strong stance on it.

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