We might want to alter the character creation process. At a quick glance, I figured out how to make a pretty uber character.
I found that the WWE Know Your Role system works pretty well, except for a few problems:
1. You have to pay money for it
2. The rules are sort of generic, sort of specific, but caught in the middle there so after a few characters everything starts to feel kind of the same. I think it's because they get specific abilities and feats, but there aren't really that many of them.
So perhaps just having a tinker with the rules might be in order, using Xerial's idea of fame to help push things one way or another, maybe even having "the tables suddenly turn" rock up on occasion when a match goes too one-sided for too long. It's a case of balancing "The players all need to have fun, and have their turn being 'in control'" (plus "Winners get more photos, leaving an even bigger power gap") against "The rules are there for a reason, play it straight down the line." Then bring "How does a wrestling match normally go?" into the equation...
As for sex of participants, I think that one's up to the players - keeping in mind that matches need to be refereed, and if a GM doesn't find the pairing to be their thing, they might tend to be... lazy about it. I'm not sexually interested in guys, so would spend more attention on matches that have females present (even if it's a M/F fight, there's still the minimum number of girls present). Futanari isn't such an issue because they look mostly like girls, they just happen to have a penis, which I don't have to imagine being there. Herm depends on what sex they mostly look like.