The legal issue in the stream. The tournament can happen but it can’t be streamed. Streaming is a legal grey area as I don’t believe it’s been pushed in court, but it’s probably a “performance” that requires the copyright holder’s permission. There are arguments that it’s transformative work, but they’re loose at best and less likely to apply to streams than vods.
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However, Nintendo has fucked with it before (remember their creator program) and has a bad history of shutting down tournaments for games that aren’t current. Atlus famously doesn’t allow persona to be streamed for an extended period after release and has filled take downs in the past.
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