I understand that part. What I am saying is that: should I buy a dog without a requirement to add the kennel name in the registered name of the dog, and should he reach Champion status in an AKC sanctioned competition, that information will show on any pedigree produced. What the contract stipulation does is insure that the kennel's name is "up front" every time that the dog is encountered. I understand why the breeder would want that and once a contract is settled on, the owner should have no reason to complain (since he agreed). But the breeder prices the dog at least in part to cover his/her costs and exposure attendant on a dog sold as show quality. This requirement just seems over the top to me, bit again, a buyer either agrees or doesn't.
I found this information very helpful when choosing a breeder, so I think it helps both ways. The breeders build a reputation, and buyers can gauge the success of the breeders lines in the sports they are interested in. It seems like a win/win to me.
While it is doubtful that I wil ever want to be heavy into dog show competition, I can foresee entering local or regional sponsored competitions (conformation and/or agility at this point) simply as a means of further bonding with my companion.
In that case, you still have options - consider co-owning, buying a sheltie on full registration, or finding a breeder who will support you participating in conformation while still on a non-breeding contract. Most of the dogs from Starr's breeders' kennels complete their Championship before being neutered because it showcases the quality of their breeding program.