I personally believe that tournaments should feature multiple challenges. For instance, one stage of the tournament would be hand-to-hand combat, either in groups or 1 on 1. If you win this, you get a reward and any money you made betting. Then, there'd be a stage 2, which could focus on mounted combat, then a stage 3, which would focus on ranged combat. You could be able to withdraw after whichever you like, but would be then unable to proceed to later stages and would receive only the money you got until that point.
I have no idea what this would take, or if it's even possible to implement, but I thought it worthy of suggesting.