Everything since the beginning of the competition was for the fourth challenge. The announcement of feats in the first challenge made people know the achievements of the strong.
The visible crowns that the designated kings had during the first challenge were a subtle recommendation by the first sage. It tells the competitors who he believed to be strong. It is all so that the competitors will be able to make an informed decision about who to follow. When there is an undisputable icon, the people can use it as a rallying point and be united.
A large portion of that preparation would have been destroyed by Soverick's and Salvos' conflict. A conflict between the two of them could have spiraled out of control. The consequences within the third challenge are trivia as to how it will affect their cooperation during the fourth challenge.