If you watch Cobra Kai -- which you should, as it's an absolutely deranged love letter to the original movies -- everyone in the valley remains obsessed with the 1984 All Valley Under 18 Karate Tournament. It's the basis of Daniel LaRusso's extremely nice lifestyle, for instance.
The original was kind of, sort of, a decade or so late responding to America's new enthusiasm for martial arts. But Cobra Kai, decades later, is basically a parallel universe where people still care about a 40-year old teen tournament.