One format that has worked up here is a handicapped by entry 9b tournament. Short races straight races (5 on the winners, 4 or 3 on the losers depending on size of field).
Straight races, but entry is $5 for chumps like me, $30 for champs like John Morra and varying entries in between. A lot of $5 and $10 players entering along with a few top players. Great opportunity for guys like me to play a lot of pool for cheap and occasionally play a great player for cheap (and I've beaten a few pretty good players on the B side - race to 3 in 9b is really short). Sure, the top tier players usually take the money, but it is worth it for everyone.