If the champion ends up winning the tournament, here are a few options...
1. Champion gets a "free pass" he can use to bow out of any upcoming title match. Maybe there's a new contender that the champion is afraid of?
2. Champion's next title defense is 2/3 Falls but he's already up one fall (meaning all he has to do is win one more fall but the challenger still has to win two falls).
3. Champion gets to pick a stipulation for his next title defense. He could pick a certain stip based on who the challenger is.
This actually happened in my last tournament for the first time. Overmaster was defending tournament winner and champion and repeated. He was given a pass on defending the title over the next month.
I forgot the exact game year it was but it was the early 2090s. Chaos was my champ and won my Royal Rumble and Survivor Series (I keep going until there's just one sole survivor) in the same year! Absolute domination!
I decided not to include the galaxy champion in my King of the Galaxy tournament luckily the defending champion just lost the galaxy championship is he would able to defend the king of the galaxy championship