Oh boy, I can't wait for something like this. The arena was one of my favorite parts of Oblivion.

I hope it works where any player can reach the Grand Champion title, but the arena instanced for every Grand Champion (this way, the player can feel like the Grand Champion instead of just another Grand Champion on a list of Grand Champions). Champions will just be assigned to a Grand Champion when they queue for a Grand Final match.

Betting on players would be fun too.

Any ideas?

I've thought about this type of thing a lot to be honest and it's the only system of like 1v1 2v2 3v3 and so on battles that I'm okay with, fights set within actual physical arenas would be a cool addition I think.

Although to keep the feel of immersion and everything I think rather than having a menu that you can magically bring up you should like put your names down in a book, as in physically sign it or talk to someone and that's how you join up for a fight. Letting other players physically watch you from the stands and even place bets would be a great addition as well.

Whoever takes the Imperial city could hold tournaments with the other factions as well or use it for RP purposes.