It doesn't matter if you are in a team, its the top players who receives the rewards. Your team could lose miserably every round but if you have the most flags/skulls/skills overall at the end of tournament you will be getting the microsoft points. Besides we will have some free for all rounds.
And another problem I need to address some people will honestly not be able to play the full tournament with us, as long as your name is on the list you can leave and rejoin as many times as you like but you will only receive points for the matches you do play in. So even the worst player can win if they stick with the the tournament all the way through.
The problem with the skull, flag thing is that it will start to become a war between teammates. The players will always want to grab the flag for themselves, and things become a mess. Not only that, but whoever does get the flag will have to have people that back him up as he captures it, and they are just as important as the one who captures the flag. You don't have to listen to me, but I have been playing the game for a while, and have observed the MLG scene where they do things professionally. I think it is best just have free for all games, including oddball and KotH if you wish.
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360 CONTEST! Half Decent rewards!