This tournament format works best with a relaxed group of 2-8 players who are willing to share game components with each other. The event organizer will need a large collection of cards in order to create the drafting packs, and may need to create proxies.
The idea is that up to 8 players sit in a circle before the tournament (which can be a one-round event, if you like). Each player receives one drafting pack, being an envelope or baggie or something which contains 8 pilot cards and 16 upgrade cards, randomized. Each player chooses 1 pilot and 2 upgrades, then passes the remaining cards to the player to their left. Selection continues in this way until the packs are empty. Each player will now have 8 pilot cards and 16 upgrade cards, and can begin assembling a 100-point squad from that collection. Any unused cards are ignored. When everyone's squads are ready, run your event like any other tournament.
That's the easy part. Preparing all this stuff takes a bit of work.
For an 8-player draft, the tournament organizer needs to create a master card list of 64 pilots and 128 upgrades, which is just a fraction of the complete set available for this game. The organizer needs to make decisions about what to leave out, and it's easier to start with a short list of things you want to keep in. The first big decision is which factions to keep, and then divide your pilot cards as evenly as possible between them. For two factions, you'll want 32 pilots each. For all three factions, you'll want 21+21+22. Once you start getting into the process of looking at your card set in those sorts of numbers, you'll see that you only have room for a few ship types per faction. You'll also see that there are a lot of must-have upgrades dictated by your choices of ship types -- their titles, fixes, and available slots.
For my store group's next drafting event, I'm going with a First Order v. Resistance theme. I used cards from my own collection, but I didn't have quite enough pilot cards to cover the 32 needed per faction. This turned out to be kind of cool, because it let me include a Bounty Hunter and couple of Patrol Leaders for First Order support, and a handful of older Rebel ships that might still be kicking around. The upgrades were chosen based on need, and then by "a little bit of everything."
Enormous card list incoming, because folks have asked to see card lists for this sort of thing.
IMPERIAL PILOTS
1x "Backdraft"
1x "Epsilon Ace"
1x "Epsilon Leader"
1x "Omega Ace"
1x "Omega Leader"
1x "Quickdraw"
1x "Zeta Ace"
1x "Zeta Leader"
1x Bounty Hunter
1x Kylo Ren
1x Lieutenant Dormitz
1x Major Stridan
1x Omega Specialist
1x Starkiller Base Pilot
1x Zeta Specialist
2x Patrol Leader
5x Epsilon Squadron Pilot
5x Omega Squadron Pilot
5x Zeta Squadron Pilot
REBEL PILOTS
1x "Blue Ace"
1x "Red Ace"
1x "Snap" Wexley
1x Chewbacca (Heroes of the Resistance)
1x Chewbacca (Original)
1x Dagger Squadron Pilot
1x Ello Asty
1x Green Squadron Pilot
1x Han Solo (Heroes of the Resistance)
1x Han Solo (Original)
1x Jess Pava
1x Nien Nunb
1x Poe Dameron (Pilot Skill 8)
1x Poe Dameron (Pilot Skill 9)
1x Resistance Sympathizer
1x Rey
1x Wild Space Fringer
2x Red Squadron Pilot
2x Rookie Pilot
3x Rebel Operative
4x Blue Squadron Pilot
4x Red Squadron Veteran
ASTROMECHS
1x BB-8
1x M9-G8
1x R2 Astromech
1x R2-D6
1x R2-F2
1x R3 Astromech
1x R4-D6
1x R5 Astromech
1x R5-D8
1x R5-K6
1x R5-P9
1x R5-X3
1x R7 Astromech
1x R7-T1
1x Targeting Astromech
BOMBS
1x Conner Net
1x Thermal Detonators
3x Ion Bombs
CANNONS
1x Heavy Laser Cannon
1x Ion Cannon
1x Tractor Beam
CREW
1x "Leebo"
1x Bombadier
1x Chewbacca
1x Finn
1x Fleet Officer
1x Flight Instructor
1x General Hux
1x Gunner
1x Han Solo
1x Hotshot Co-pilot
1x Inspiring Recruit
1x Intelligence Agent
1x Kylo Ren
1x Mercenary Copilot
1x Navigator
1x Nien Nunb
1x Operations Specialist
1x Rebel Captive
1x Rey
1x Systems Officer
1x Tactician
1x Tail Gunner
1x Weapons Engineer
2x Recon Specialist
ELITE PILOT TALENTS
1x A Score to Settle
1x Adrenaline Rush
1x Calculation
1x Crack Shot
1x Daredevil
1x Deadeye
1x Decoy
1x Determination
1x Expert Handling
1x Expose
1x Intimidation
1x Juke
1x Lone Wolf
1x Marksmanship
1x Opportunist
1x Outmaneuver
1x Predator
1x Rage
1x Ruthlessness
1x Squad Leader
1x Swarm Leader
1x Swarm Tactics
1x Trick Shot
1x Wired
MISSILES
1x Adv. Homing Missiles
1x Assault Missiles
1x Chardaan Refit
1x Cluster Missiles
1x Concussion Missiles
1x Homing Missiles
1x Ion Pulse Missiles
1x Proton Rockets
1x XX-23 S-Thread Tracers
MODIFICATIONS
1x B-Wing/E2
1x Hull Upgrade
1x Lightweight Frame
1x Smuggling Compartment
2x Autothrusters
2x Twin Ion Engine Mk. II
3x Guidance Chips
3x Integrated Astromech
ILLICIT
1x Burnout SLAM
1x Rigged Cargo Chute
SYSTEMS
1x Accuracy Corrector
1x Advanced Sensors
1x Collision Detector
1x Fire-Control System
1x Reinforced Deflectors
1x Sensor Jammer
TECH
1x Comm Relay
1x Hyperwave Comm Scanner
1x Pattern Analyzer
1x Primed Thrusters
1x Sensor Cluster
1x Targeting Synchronizer
1x Weapons Guidance
TITLES
1x A-Wing Test Pilot
1x Andrasta
1x Black One
1x Dauntless
1x Kylo Ren's Shuttle
1x Millennium Falcon (Heroes of the Resistance)
1x Millennium Falcon (Original)
1x Moldy Crow
1x Outrider
1x Special Ops Training
TORPEDOES
1x Extra Munitions
1x Flechette Torpedoes
1x Ion Torpedoes
1x Plasma Torpedoes
1x Proton Torpedoes
1x Seismic Torpedoes
TURRETS
1x Twin Laser Turret
2x Ion Cannon Turret