I think it's a good idea but I have a few changes to it. It should be a Child Board in the bakudome and only one tourney could be going on at the same time. And when it's time for your tourney you can posts the topics for the brawls.
I'd say 3 max, and yes a child board is excellent rather than a whole section. Thing is I think these kinds of things should only be for the bigger tourneys. Not the little 8 people tourneys with no prizes. I mean yours and Ernie's were of course big (Not to mention Ernie can do whater the heck he wants XD)