Hold a New Tournament
Reason: religious holiday
Events: magical duels, martial arts and fencing
Style: elimination
Length: three days
Awards: first place and an honorable mention
Top Prizes: contest-related (eg, horses for jousting)
Crowd: very large
Betting: official - rigged odds
Other Entertainment: trained animals, local bards and magic shows
Competitors of interest:
The determined youth who came from nowhere.
The musclebound brute who is very good.
The jaded warrior who is suspected of cheating.