Denizens of the Tower!
This is the Slaughterhouse, an underground illicit fighting pit sponsored and maintained by the wealthiest individuals in the city. The organizers are safe from law-enforcement because the rich keep them paid off to look the other way. Why so much secrecy?
A criminal organization runs the place. The battles are staged, at least staged against the prisoners because the Slaughterhouse employs professional fighters and mercenaries to massacre unable, untrained, and scared participants. The victims of this atrocity may be enemies of the criminal ring, beggars and itinerants no one will miss, and in some cases, an important person; victim to a deranged political vengeance. The place is a success, the rich pay top-gold to be able to see the poor fighters get cut in half or dismembered. The nastiest the spectacle, the better the tips. An unfortunate lad of a low-nobility family is currently scheduled to fight. His mother offers a considerable amount of gold for people to sign in as professional fighters and help her son escape.
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Until the next one, Elven Tower!