I know of calcuttas for golf tournaments. It might be the same thing.
You have an auction where bidders can buy teams or individuals (usually teams). Highest bidder obviously buys the team. Do this until all the teams are bought.
Example: (dollar amount is the selling price)
Team A: $500
Team B: $200
Team C: $600
Team D: $300
Team E: $100
Total Calcutta Dollars: $1700
Usually the host of the calcutta will take a rake, say 10%. So now you have a total purse of $1530.
1st place pays: $918 (60%)
2nd place pays: $612 (40 %)
This money would go to the person(s) who bought the team. This is a small example but it should clarify it.