Hold a New Tournament
Reason: religious holiday
Events: fencing, magical duels, team fighting, throwing (javelins, etc) and melee fighting
Style: round robin / points-based
Length: five days
Awards: first and second place
Top Prizes: contest-related (eg, horses for jousting)
Crowd: most interested in certain event(s)
Betting: official and unofficial
Other Entertainment: parades, local bards, acrobats and jugglers and a storytelling contest
Competitors of interest:
The precocious commoner who came from nowhere.
The wandering fighter who is very good.
The musclebound brute who has already made a few enemies.