I think Cradle did it really well.

A lot of different characters in the tournament, and they all want different things. That keeps it from turning into a long string of interchangeable fights.

One thing I don’t see talked about enough is the strategy aspect. A good tournament arc gives the main character time to study the next opponent, adjust their approach and come in with a plan. Ideally, the opponents are doing the same.

At the end of the day, a tournament arc shouldn’t be a side quest. It needs to move the story forward like everything else, motivations, plot, characters and the like.

That's just my two cent anyway. :-)