Extraordinary claims surrounding university entertainment (7)
I believe the answer is:
musical
'entertainment' is the definition.
(I've seen this before)
'extraordinary claims surrounding university' is the wordplay.
'extraordinary' is an anagram indicator.
'surrounding' means one lot of letters goes inside another.
'university' becomes 'u'.
'claims' is an anagram of 'msical'.
'msical' enclosing 'u' is 'MUSICAL'.
(Other definitions for musical that I've seen before include "Annie maybe" , "Show with singing and dancing" , "Cats maybe" , "Pleasant-sounding" , "Annie or Mame, say" .)