Ask HN: Ok for a Hackathon sponsor to own the IP from the hacks?

Here's the relevant clause in the linked page. This seems shady to me. Is it?

---Ownership, Open Source, IP and Your Rights Top 3 Finalists: All finalist teams agree to give the CFDA, its agents or its assignees the right of first refusal to co-develop and/or purchase in whole or in part the idea or app and all supporting code and documentation developed in connection with the Fashion Hackathon, for a period of one year, starting from the day of the event.

hell no