This sounds an awful lot like a game that used to take play in Video Games & Technology. The basic concept is the same as what you are proposing, except the organiser would simulate the matches he made on one of the Smackdown games. He would pit the AIs against each other and write match reports and storylines based on how the matches went. It was a very cool idea and I enjoyed participating myself. I imagine it will be easier to run without having to simulate matches either, apparently that was very time consuming.