I heard similar things about his wanting a free booth at the Expo (what do they run? 10K or something crazy?), title sponsorship, all sorts of stuff that other people pay for.
Of course I also hear that his leaving MuscleMeds caused MM to pull their sponsor money from AMI (who owns the Olympia), and there was a whole mess because of that too.
Either way, if the guy wanted to, if he really viewed this contest in the light that he always claimed to, he could have submitted his contract, and left all of the other BS as a different issue completely. Whether it was Kai's choice, his agent, any of his countless hangers-on, we may never know, but I will never view him as some tragic hero. I liked him as a bodybuilder. That's it. No deep thinker or philospher. No "I rose above it all (while living on tax payers money because I couldn't get a job) child of the state" local boy makes good.
At the end of the day, the IFBB is a business. Kai would have made some decent $ at the Olympia, and the shows that followed if he wanted to.