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That scoring system really bothers me. A series of matches against evenly ranked foes, where each match is a coin flip to see who wins, would result in an average of -3 points lost every match(+2 for winner -5 for loser). Furthermore, by treating team strength as dependent on total tiers, you incentivize smaller elite teams. A group of just two tier 6 participants would slaughter everyone, despite a strength rating of 12 (compared to an average of 16 for a full team of eight tier 2s). My suggestion would be an open Swiss style tournament: each team gets matched with other teams with similar overall win-loss records every time they queue up. After enough matches have been played (and the organizer should set a minimum number per day), the teams should gradually separate out into a wide spread of records, at which you pull out the top 32 or 64 and run a double-elimination tournament to find your winner and second place.