Corrected entry: How it is possible that, despite Loki being on Sakaar for some time, he seems to have no idea that The Hulk is also on the planet? This is given away by his reaction when he sees Hulk in the arena. Loki also has gotten close to The Grandmaster, and there are images of the Hulk carved into the sides of buildings, but he has no clue that The Hulk is the arena champion?
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Correction: Loki has only been on Sakaar for a week. We do not know how often the Contest of Champions is held with its champion (Hulk), we also don't know how often Loki left the Grandmaster's home. Also we see that the building with Hulk's head is under construction, so Loki may not have seen it when it was closer to completion.
Also, Loki specifically says he's never seen the champion. He may simply have had no interest in watching the gladiator battles until he had an opportunity to watch Thor fight.
Loki does not have the best relationship with the Hulk and may be in denial of Hulk's fame on Sakaar. Loki may even be paranoid or phobic about the Hulk's presence on Sakaar. Being a consummate deceiver, first and foremost, Loki is probably lying, just to avoid the subject of the Hulk.
Charles Austin Miller