Tournament Scenario..in need of Official Ruling

[phillypoker]

3 players left in a tourney.

Player 1-first to act and short stack
player 2-next to act with slighty more chips than player 1
player 3-last to act and chip leader

Player 1-pocket 3's all in
player 2-pocket 3's all in(what are the chances in that)
player 3-pocket 8's all in covers both players 1 & 2

Player 3-knocks both 1 & 2 out.
My question is does player 1 & 2 split prize money or does player 2 take the money since he or she has more chips.

player 2 wins

It depends on what kind of rules you are playing by. I would say that 2 should win though.

you need to set the rule before the tournament for such a case. It is common if two people go out at the same time that the player with the most chips before the hand gets the better place. To make it simple in my tournaments I set the rule before tourny that they split that position prize money, after all when you are out of chips you are both even. haha