I agree with LigH, there should be a fee only for entering the combat. Maybe next time some of the local townsfolk can help sponsor the winner?s money.
I would suggest the first group of contests should be setup a head of time, as much as possible. Or at least a list of fighters should be made. If RL or dinner interferes you move to the end of the list. Once through the list if you are not available to fight you forfeit, possibly without refund. Someone in role of organizer, should be specifically responsible to keep the list and the event progressing. If you are thrown out during the fight the fight is forfeited and both players move to the end of the current list. Once through the list a new list is made for the winners and the process is repeated.
There should be a referee that ignores PMs once the fight starts. The referee should move the fight along just like they were breaking up fighters that lock arms. The organizer can sound a bells at the end of the round or the fight. The referee would encourage the fighters to fight correctly.
The grouping is a good idea for IC talking and can be used to govern the group. But I think the PMs delayed this allot. One person should be chosen in the PR role that will respond to outside communication. If that does not work, drop the group idea and only use it for the organizers to communicate. That way the crowd shouts and talks on the talk channel like normal.
I disagree with the idea of a judge panel. I think the idea of a single judge (maybe the referee) to interpret the choice of the audience is appropriate. I can see how the fact that it could become a popularity contest could be a problem, but since the goal is to try to judge RP it might be appropriate. Choosing an unbiased panel in my mind is more difficult.
Nice try ? don?t give up.