Haven't had time to read all these posts, but when a promoter pays the NPC or IFBB sanction fee, it includes payment to ASCAP and possibly one other organization which allows all recorded songs to be used during the event.
ASCAP = The American Society of Composers, Authors, and Publishers
When this problem first arose the participating bodybuilders were concerned that they would have to pay any fee imposed for the use of the music/song that they were intending to use during their posing routines, but the sanctioning bodies (NPC/IFBB) releaved them of that responsibility by paying that fee on behalf of the production itself. Back then it was included in the sanction fees so actually the promoter paid it.
I believe it still works the same today.
In fact I recently heard that ASCAP now wants to collect a fee everytime your cell phone rings if it plays a tune. Someone should have registered "ring-ring" a long time ago.