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This is making sense.
From the reference manual:
Backupfile
String indicating the name of the backupfile. Note: the file must not exist.
Examples: $rc=BackupEventLog("Application" , "C:\eventbackups\application.evt")
$rc=BackupEventLog("\\PDC\Application" , "C:\eventbackups\application.evt")
It never states that when you backup a remote server that it saves the log file on that server. This is where I was failing to understand.
That was the trick. How interesting. Thanks for helping clarify that.
I was under the impression it would backup the specified event log to the specified file on the system running the command.
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