Hold a New Tournament
Reason: festival
Events: races, team fighting, martial arts, fencing and jousting
Style: double-elimination
Length: five days
Awards: first, second and third place
Top Prizes: small sums of money
Crowd: rowdy
Betting: official and unofficial
Other Entertainment: local bards, magic shows, musical contest(s) and parades
Competitors of interest:
The jaded warrior who desperately needs the prize.
The nondescript mercenary who has more wit than skill.
The showy mage who is highly talented.
The precocious commoner who may not be in it to win.
The foreign noble who is relatively well-known.
The cheerful fighter who has an ulterior motive for competing.