Actualy I wouldn't mind seeing something like that, have it like some underground arena in some remote colony world. Definately something illegal but so many UN officials are involved that no one does anything about it. Have everyone and anyone compete in it, prisoners, social outcasts, people needing money, people just looking for fame, VF aces who want a little more money, hell maybe even have one of the Jenius girls compete every now and then.
I'm inagining a match beween a full armor VF-1 and VF-11 with mech sized chainsaws...
Then I'm pictureing two Zentrans in full armor fighting hand to hand and one guy doing the Stone Cold Stunner on the other...
All this in view of a cheering crowd.