Conspiracy Drafting, Dropping and Material Ownership
It sometimes feels like “sanction” means different things depending on what you're doing.
I've been confused by the wording as well, since the MTR talks about sanctioning requirements in a competitive context… “defining appropriate rules, responsibilities, and procedures to be followed in all DCI-sanctioned, competitive-level Magic tournaments”.
My understanding, which may be incorrect, is that the “competitive-level” mentioned in the MTR just means “not casual”. And when the MTR says “sanctioned”, it means “sanctioned at competitive-level, following one of the 3 RELs”, but just says sanctioned as a shortcut within the context of the document.
So, you've got a group of players that came and did something (and get 1 PWP)… that can be a sanctioned event as far as WER is concerned. And if you host an event that is run at “Pro-REL events”, “Comp-REL events” or “Regular-REL events” (which have PWP per-win, participation points, and/or multipliers), then the MTR starts to apply (and now that the MTR applies, you're subject to the extra sanctioning requirements it mentions).
This was synthesized from parsing the documents and talking to some other judges and TOs who were often unsure of pieces, so I could be way off. But that's how it sits in my head for the moment.