Is it time for internal servers?

Would it be outside the realm of possibility to have a each of lan event be able to have it's own internal server? For those of us old enough to remember a time when a bunch of guys would get together with their computers (or consoles) in a single house and connect them all via a switch, this idea isn't new. Watching Dota Pit and seeing the issues around the ISP for the event, it stands to reason that events could benefit from this idea - have all the computers on an internal network. I know there would be many questions as to how to implement this but it would allow tournaments to go smoother. Until esports reach the level of execution of more traditional professional sports, it still has some hurdles to overcome.