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During the Daihasei Sports Festival (or Daihaseisai), schools from Academy City compete in various competitions such as ball-tossing and bread-eating.

Ceremonies at the Daihaseisai~

I assume that the final ranking is determined based on which teams win the most events. What are the prizes for the winning schools/teams?

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    I don't think it was eve mentioned if there was even going to be prizes. Touma , however, did win a seven days, five nights, trip for two people to northern Italy from the "guess the attendance" stall on the final day.
    – кяαzєя
    May 13, 2013 at 9:53

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No prizes are officially stated. However Daihaseisai (Grand Champion Star Festival) is a big deal for two reasons. The first reason is to observe large scale interference between espers. The second reason is that the festival is about as popular as the World Cup or the Olympics. If not all than most of the contests are broadcasted world wide for those who were unable to attend to view.

Besides winning your school honor and prestige, they probably give out medals or a cup to the winning schools.

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