I like the idea, but I'd push for holding off for a few reasons. First, we have a lot of aimless characters right now, lacking a division and a direction. A tournament where the losers float after they lose probably won't help that. Second, we need to start building the divisions solidly (World has one or two contenders; IC's lower contenders are floating) and pushing feuds. Finally, I thought our main focus this month would be building the Predator division? The tournament would leave no room for it.
In my opinion, I think we hold off for 3-4 months, start building characters, the title divisions, and let feuds grow. That way, when the tourny does occur, it means A LOT more, and it won't be so random because a lot of the partners will have likely feuded already. It's definitely a good idea, but I don't think it's time for it just yet.
If Prime/Pete want to go for it though, I'm completely fine with that.