I wouldn't mind points. That way if you're epically winning every battle then just lose one battle you won't go down a place. Winning the battle would get you a certain amount of points and you can get bonus points through other means. You can loose points for randomly dropping out, loosing the match (of course), refusing to get hit to a questionable degree, etc. If you are a great sport during the battle then you might not lose that many points if your character loses.