It was after the Eighth Championship, when it was decided to increase the league to two divisions, that the concept of a knockout emerged. The original idea was a simple three rounded knockout that required eight members to work and the individual games were drawn at random as opposed to in bulk, unlike the league at the time. Although there were reservations that the Tournament Knockout would take some of the shine of the league competitions the Knockout was added to the Ninth Championship and was a resounding success. By the Twelfth Tournament, however, the Knockout had become too impractical to continue. The collapse of Division Two following the Tenth Tournament and the length of time it had taken to complete the Knockout at Eleventh Tournament (6-months after the league finished) were the soul reasons for putting an end to this competition.
The Street Fighter Challenge appeared at the start of the Twelfth Mega Drive Championship and acted as a "warm up" without any official status. In the style of the Tournament Knockout, the four league players went head-to-head in an elimination contest. Doc Shakib won the first ever Street Fighter Challenge, beating Mr Smith in the final. The competition was repeated at the Thirteenth Championship, with Doc Shakib once again beating Mr Smith in the final.