Hold a New Tournament
Reason: held annually
Events: jousting and races
Style: round robin / points-based
Length: several days
Awards: first, second and third place
Top Prizes: enchanted equipment
Crowd: will applaud any good effort
Betting: unofficial - discouraged
Other Entertainment: professional hecklers, musical contest(s) and a storytelling contest
Competitors of interest:
The hulking barbarian who is highly talented.
The arrogant knight who is rumored to not always fight fair.
The wandering fighter who has little practical skill.
The tricky rogue who may not be in it to win.