Don't get me wrong, the whole idea here is to make OC fights, acceptable in IC terms. Really this should only be meant for zoners, whom RP. I don't want to flood the main zone's since people utilize such occasionally and sometimes even give us the burden of 'hogging the zones' which is why I suggest Jisegakure to 'house' this event. and then we may conduct private zones or use the main zone for the event. Given its description, this place is supposed to be a sanctuary; where anyone and everyone is to maintain peace with one another at all costs. (not sure who runs Jisegakure, but I'm rudely barging in to make this all happen)
With such, due to my fantastic sealing prowess and barrier knowledge; I will set up a barrier around it all to specifically alter this experience to your shinobi.(not as a means to have control over you but as a means to prevent tomfoolery) You can still visit Jisegakure and do whatever, but once you approach the arena area you will enter the barrier zone. My thoughts would be such; to construct a mind erasing seal that will forbid you from remembering your opponents abilities and other helpful incentives, chakra suppression seal that would refrain you from being able to preform any techniques, and any other restraints necessary(still to come). Aside from the various NPC's setup to break up any fights or quarrels of the like.
Within such barrier, in its center will be the arena. Surrounding it are various shops and stands; selling various foods, souvenirs, and supplies for those travelers whom made it to the arena. Then maybe a 'hospital' of sorts, in which those whom lost a battle can recuperate. A building that exchanges honor points for prizes and a general registry area, which would be at its entrance. Overall there can be sectors in which village factions may reside in; specifically the 5 great nations and then another area for missing nin/non aligned nin. The general meeting area is mostly open field, in front of the battle arena itself.
Once you are ready to actually enter the arena you are given an ankle bracelet or a wrist bracelet; whatever really. Although this bracelet will become your 'heart gauge' as well as remove SOME of the restrictive properties of the barrier. Which would allow your character to defend themselves normally. Essentially, once your heart gauge reaches zero, maybe through some pixie dust action; some revival technique activates to restore your body back to life. Although if the loser 'dies' they won't be restored to tip top shape, hence the creation of a hospital to allow for a more better recovery.
Whomever is the victor of a battle, ends up receiving 'honor points'. Dependent on the severity of the match is what determines just how many of those points you gain. If you are fighting for a village, those honor points also rack up for the village's overall honor. Meaning the more contenders a village has winning, the more honorable they are in the Battle Arena. Although, your individual character will still retain your honor points separately. I want to create some sort of prize list, that offers sacred techniques, customized weapons of the sort; in exchange for those honor points. The items sold at the arena are aimed to specifically enhance ones combat, only to make them much more deadlier in combat. Meaning these prizes aren't easily attainable.
The whole idea of this, is to see who is the most honorable shinobi when it comes to combat. I want to setup maybe some NPC bosses so that instead of group 2v2's or whatever, we can have group 2 v 1 where the 1 opposer is an NPC boss. The harder the boss the more honor points gained and so on and so forth. I'm also going to compose a 'battle master' who is the leader and organizer of this whole event. Keep in mind this guy is going to be OP AF to prevent anyone from ruining the event. Anywho, there are more ideas to come this is just some basics of the top of my head.