Contest featuring Oxford University is level (4,3)
I believe the answer is:
even out
'is level' is the definition.
(I've seen this before)
'contest featuring oxford university' is the wordplay.
'contest' becomes 'event' (event can mean a sporting competition).
'featuring' indicates putting letters inside.
'oxford university' becomes 'OU'.
'event' placed around 'ou' is 'EVEN OUT'.
(Other definitions for even out that I've seen before include "Make less varied" , "Smooth" , "Make level" , "Become equal" , "Get level" .)