Geralt encounters many strange beings during his journeys. He meets one of them when he's in Skellige, on the island Spikeroog. If he wants to complete the quest "Fists of Fury: Champion of Champions" and become the champion of fist-fighting, he first needs to finish the quest "Master of the Arena". It's a side quest and it has the recommended level of 14. However, it's possible to finish on a lower level as well.
The reason for this is that Geralt doesn't need his fighting skills in the quest, so he can undertake at almost any time once the main story of the game took him to Skellige. The quest is available in the village of Hov. There's a local famed arena on Hov, and many warriors want to compete in it to prove their worth. Geralt can travel to a fast point near the arena if he's already unlocked Hov's location previously in the game. If he hasn't, the next closest fast travel point is in Svorlag, a village larger than Hov. Finally, there's the possibility to travel to the Old Watchtower.
5 The Wraith's Story
When Geralt arrives on Hov on Spikeroog, he learns that a wraith is haunting the local arena. Because of this, people can no longer compete there. Geralt learns from the guards overseeing the arena that the wraith's name is Ulle the Unlucky. The guards share Ulle's story with Geralt.
It turns out that the specter is an unsuccessful warrior. He fought many people but they always defeated him. During one tournament, Ulle had to fight the local jarl. The jarl tormented the poor soul and laughed at him. Ulle got angry and he killed the jarl, but before the jarl died, he cursed Ulle with a losing streak. Since then, Ulle's been haunting the arena, unable to cross over to the afterlife. Many warriors visited the Arena and tried to get rid of the wraith but he always came back even after they had defeated him.
4 Fighting The Wraith
Once Geralt learns the wraith's story from the guards, he can go fight him. What makes this quest different from others is that the key to completing it is to let Ulle win and not to kill him. Geralt and Ulle talk at first and the specter turns out to be different from other wraiths. He seems perfectly sentient and reveals all the people who boast they will kill him were actually quite boring. The wraith is simply tired of his curse and wants to move on. Geralt challenges him to a fight and they battle each other.
If Geralt wants to let Ulle win, he can just stand there and let the dark figure slash at him with his sword. He also shouldn't use the witcher signs against Ulle. The spirit's attack will bring Geralt's health down but it shouldn't kill him, regardless of the difficulty level the player has picked in the game's beginning. Once Ulle realizes he's defeated Geralt, he will stop attacking him. The curse ends and the player will get 25 experience points. The wraith thanks Geralt and leaves for the afterlife, ready to drink alongside his fallen fellow warriors.
3 Getting His Reward
Once Ulle's gone, Geralt should return to the guards. They thank him for getting the arena rid of Ulle. As a reward, they give him 15 crowns and the player will get 10 experience points. The guards also promise Geralt a share of the arena's first day of fighting once it opens again.
To collect his share, Geralt needs to come back to Hov a few days later. Once he does, the guards will give him additional 20 crowns. The player will get extra 20 experience points and the quest will end.
2 The Reward Can Be Lower
If the player wants to undertake the best version of the quest, he needs to let Geralt speak to the guards before he defeats Ulle.
If Geralt goes straight to defeating Ulle, the guards will pay him the reward but Geralt won't get the extra share of the arena's proceedings.
1 Three Possible Ways How To Do The Quest
All in all, there are 3 possible ways how to do the quest. Number one is the one described above. Geralt talks to the guards, lets Ulle win, collects his reward, and returns a few days later to get his share of the arena's profits.
Number two is more straightforward but leads to less money. Geralt enters the arena, lets Ulle win, and only talks to the guards afterward. They will pay him the reward but he won't get any extra money.
Finally, it's possible to combine these two approaches. Geralt enters the arena, fights Ulle, and defeats him. He realizes Ulle will be back and he needs to find a better solution. He talks to the guards and learns the truth about Ulle. Geralt goes back to the arena and fights the dark figure again. This time, he lets Ulle win. From there on, the third option proceeds the same way as the first one.