I'm thinking the best way will probably be to go for the group stage + knockout format. Groups of 4 and we can continue to add groups as per demand for entrants.
Taking into account concerns about interest waning if the comp was long, my suggested comp format would be:
Groups of 4 with one match-up against each opponent in each group - Guarantees each entrant at least 3 designs. Number of groups determined by how many entrants we get.
2 Options for who progresses.
Option 1: Top 2 from each group progress + next best if required to make up 8, 16, 32 etc for knockout round.
Option 2: Winner of each group progresses plus however many required for knockout round judged on Votes Difference (Votes For - Votes Against).
In order to ensure no bias in voting, you can't vote on match-ups within your own group.
I've started this thread so we can have a bit more of an in depth chat about starting up a Design League. So if you're interested in participating, please put your two cents worth in...
Basically, the general idea would be to have match-ups once a fortnight or so between members of the comp where each match up would be allocated a team and the designers would both make a kit for the same team. Anyone then votes on the match ups and points are awarded. I've based this idea off of another tournament which ran on another site.
In order not to clutter up the main site and to allow more general conversation on the topic, we could run the comp through the forum. The good thing about the comp would be that there wouldn't be a limit to the number of entrants and that everyone would get to design a kit every round - no eliminations.
Anyway that's the general gist of it. Please feel free to comment and give your opinion on what you would/wouldn't like to see... and most importantly, if you would want to participate.