Who says you have to get into their arena? Wasn't that where your student got dissed? You are creating your OWN arena. Just start small and build. If you are friends with a few Sifu, start with them. I do not think this is a major stretch for you.
Basic suggestion for a small tournament:
Full contact tournament: Intermediate and advanced only. 3 weight divisions, 8 participants per division
Hand Form competition: Intermediate and advanced only. 6 to 8 participants per category
Weapon Form Competition: Same as Hand form competition
In each category, points are assigned to 1st, 2nd, and 3rd place, so as to determine a Grand Champion (for advanced competitors only). To encourage fighting, the accumulations of first place wins in hand and weapon forms should not match nor exceed a first place in fighting.
mickey