Sports in fantasy games are rarely mentioned (they really aren't that applicable to gaming usually), but here's some ideas:
1. Goblin ball. Kick the goblin across the goal line to win! Everyone wears leather armor. Magic and weapons are not allowed. Kicking, punching, and tackling are perfectly fine though. Oh yeah, the goblin gets a dagger.
2. Hold the bridge. Two teams, each in armor and wielding clubs and staves, fight over a bridge. Whoever holds it after 15 minutes is the winner. A popular variant has three teams involved, with one big team in the middle and two smaller teams on each end.
3. Don't Flinch! Spellcasters face off against each other using illusion magic. Whoever steps back loses.
Of course, the winners get money, booze, fame, and girls. Losers also do fairly well, as long as they put up a good match.