It seems that Xena and Despair (the Champion of Dahak) have both said the Talisman of Fate belongs to them. Whoever controls it will have power over all of mankind. Because of this, Xena does not want it to belong to someone who would do bad things with it. A battle takes place, but the Fates themselves decide that the only way to who should have the talisman is to have a tournament. Each of Earth's greatest heroes and villains will fight in the tournament. 