No just follow these steps.
1. Make a global of your room name and any other needed information.(A global needs 10k)
2. Once theres quite a crowd in your sever or you think your ready to start mute all of them(muteall) and state the rules and the prizes like for example:
The rules are no spamming,flamming,caps,colors, and anything else that nessecary to state.
And the prize is 1k. And if anybody dosent follow the rules you give them a warning if they dont stop kick them or Ban them.
3. After you have explained all of that you can unmute them(/Unmuteall) then put a knockout(/knockout) after the match that just happened.
4. Watch The whole tournament until the finals and once someone has completed the final match you go and send them the prize of 1k.
After this is all over u can disable knockout mode and do what the hell you want
If you think this is wrong Contact a GM