Hold a New Tournament
Reason: festival
Events: fencing, martial arts and jousting
Style: round robin / points-based
Length: about a week
Awards: first place and an honorable mention
Top Prizes: good equipment (armor, etc)
Crowd: will applaud any good effort
Betting: official - fair odds
Other Entertainment: acrobats and jugglers and trained animals
Competitors of interest:
The showy mage who is highly talented.
The devoted cleric who is suspected of cheating.
The foreign noble who has an ulterior motive for competing.
The cheerful fighter who is surprisingly agile.