I like the rotation idea. I say rotate between San Diego (San Diego Arena is off-campus and seats 14,500), Las Vegas, Salt Lake City, Denver, Albuquerque, and Dallas. Those are all decent destination cities with plenty of attractions and profitability. Make the cities bid to get the tournament - if one won't bid high enough (e.g. incentives, profit-sharing, etc.), simply exclude that city. This will give the home team a huge incentive to get their city to support the idea.
Granted, some years will have less attendance (Albuquerque, Dallas, and Denver) but others will be much higher. Plus, by pitting the cities against each other in terms of incentives, you yield increased profitability.
Neutral sights in each city are preferred - San Diego Arena, Pepsi Center, Delta Center, American Airlines Arena, etc.