How does watching a Knockout Tournament work?

Once you have your code for a Knockout Tournament, press "Knockout Tournament" in the main menu and input the code. This will put you in a queue mode where it will search for a match. Once a match is started in the game, you'll automatically start to watch that match. You can only watch one match at a time. To stop watching a match, you can quit watching the match by pressing "Esc" and going back to the main menu.