First talk to Jakin and then go to the nearby Champion’s Manor.
Tyr Magnus wants to talk with you there.
The man will offer you a fight, where you’re free to make double money.
But you have to fight alone.
Get rid of weaker enemies first and then defeat their leader.
As a reward you’ll receive gold and good pair of shoes.
to get to finish the quest, meet Tyr Magnus again.
Talk to Jakin and go to the arena to fight with Holden LaFayette and his team.
While he takes Holden’s hits, it’s possible for you to easily kill the rest of enemies.
After LaFayette’s dead three mages will appear on the arena, so be prepared for a longer fight.
As a reward for winning the fight you’ll receive gold and two armors.
First talk to Jakin and then go to the east where you are supposed to meet Magnus.
But instead of him you’ll encounter an assassin there.
If you succeed with a persuasion, you won’t have to fight with him.
After dealing an issue with the bandit, return to the arena to help your companions.
But first you’ll have to defeat a group of guards guarding the passage.
Once you get to the arena, you’ll be attacked by two large trolls.
Fortunately you won’t have to fight them alone.
Let your companions draw attention of monsters, while you could attack them from behind.
After the death of the last enemy, return to Jakin to collect your reward.
Championship Match
To make this quest available, first complete the mission “Meeting with Magnus”.
This time Jakin will send you to the last fight.
If you’re able to win it, you will be known as arena champion.
Your opponent is Tyr Magnus and his companions.
This fight is not easy, so you may use Reckoning mode during it.
Thus you should quickly get rid of weaker opponents and easily defeat Magnus after that.
As a reward you’ll get gold, powerful sword and a card Twist of Faith - Undisputed Champion.

you’re free to collect your income at Jokull Fangard, who stands on the stair nearby.
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