Hammerfast and the festival of the eye

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My party has just travelled to Hammerfast and is going to take part in the festival of eye's main event. I am playing the event as an encounter where the entrants are eliminated once bloodied. There are going to be 26 entrants in all (6 of which are the pc's). I was wondering if anyone else has tackled this or had their dm try it, as it is in one of the published town guides, and if so what they did