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Hold a New Tournament

Reason: festival
Events: races and jousting
Style: elimination
Length: one day

Awards: first place and an honorable mention
Top Prizes: contest-related (eg, horses for jousting)

Crowd: mostly intoxicated
Betting: unofficial - almost encouraged
Other Entertainment: hired bards, magic shows, local bards and acrobats and jugglers

Competitors of interest:
The foreign noble who has more wit than skill.
The musclebound brute who is very good.
The local favourite who is surprisingly agile.
The wandering fighter who has already made a few enemies.
The nondescript mercenary who has good odds to win.