I love the idea. Something like the Masters already exists, by the way! The tennis event at the Games of the Small States of Europe.
This is what happened in 2007, in Monaco -
First Round
(1)Stefano Galvani (SMR) d. Jorge Vila Vila (AND) 6-1 6-0 Petros Baghdati (CYP) d. Matija Pecotic (MLT) 6-4 6-0 (3)Jean-Rene Lisnard (MON) d. Jiri Lokaj (LIE) 7-5 6-1 Mike Scheidweiler (LUX) d. Andri Jonsson (ISL) 6-0 6-1 Matthew Asciak (MLT) d. Gilles Kremer (LUX) 6-0 6-7(6) 6-4 (4)Arnar Sigurdsson (ISL) d. Domenico Vicini (SMR) 6-3 6-4 Paul Gerbaud (AND) d. Christophe Koutrouza (CYP)6-2 6-4 (2)Benjamin Balleret (MON) d. Gian Carlo Besimo (LIE) 6-0 6-1
Quarterfinals
(1)Stefano Galvani (SMR) d. Petros Baghdati (CYP) 6-1 6-0 (3)Jean-Rene Lisnard (MON) d. Mike Scheidweiler (LUX) 6-1 6-2 (4)Arnar Sigurdsson (ISL) d. Matthew Asciak (MLT) 6-2 6-3 (2)Benjamin Balleret (MON) d. Paul Gerbaud (AND) 6-1 6-1
Semifinals
(3)Jean-Rene Lisnard (MON) d. (1)Stefano Galvani (SMR) 6-3 7-6(6) (2)Benjamin Balleret (MON) d. (4)Arnar Sigurdsson (ISL) 6-0 6-3
Finals
(3)Jean-Rene Lisnard (MON) d. (2)Benjamin Balleret (MON) 6-0 6-1