Courts controversy, ultimately displaying guts all round (8)

'courts' is the definition.
(innyard can mean the courtyard of an inn)

'controversy ultimately displaying guts all round' is the wordplay.
'ultimately' indicates one should take the final letters.
'displaying guts' becomes 'innards' (I can't justify this - if you can you should believe this answer much more).
'all round' means one lot of letters goes inside another.
The final letter of 'controversy' is 'y'.
'y' placed within 'innards' is 'INNYARDS'.