Unlike lap knockout races a player isn't eliminated after being the lastest one in a lap. Instead the player who finishes the whole race as the last one is eliminated in future races.
In Need for Speed III: Hot Pursuit eight racers participate in a knockout race, which contains seven circuit races. The last racer in one race is eliminated. In Hot Pursuit 2 only four rivals compete in a knockout. The start position of a race is determined by the positions of the racers in the latest race.