False.
Every college coach tries to recruit the BEST players at these tournaments. The high majority of the teams that play in these events consist of players that are not recruited and unfortunately will not get an opportunity to continue playing at the next level. The games that have 40+ coaches watching are not watching all of the girls competing in that single game.
Trust me, if that "player" is playing with her high school team those 40+ coaches will be there baby sitting their prospect.
Since the Stars have been introduced here, pray tell, how many have gone on to the next level and lead their team to the promised land? Don't get me wrong, I love AAU/Club basketball until it gets delusional about every parents child being a recruitable student-athlete. Local club connections might help build your summer basketball camp and put butts in the seats, but so will winning with bonafide, legitimate, NCAA Division I talent.
It sure makes coaching a lot easier!