Guild tourneys

What do you think is the best way to set up your own tourney within your own guild. And do you give handicaps. Any advice would be greatly appreciated, cheers.
In Untouchables we play a sevens style format; with everyone staying in for three rounds and getting the chance of winning either the Cup, Plate, Bowl or Shield.
We have three divisions in a knockout style based on players team ratings. Winner of each division then has the opportunity in a relegation/promotion playoff to work their way up. All games have a home and away leg. Even managed to setup a spreadsheet to manage the draws and results
We used a handicap of 1.75 per star rating difference which was added to the home and away aggregate. 9 different winners with a very varied star rating