Photoshop Image Manipulation

I need someone proficient in photoshop to take my source raw image and basically just make the background (which contains people and their faces) naturally out of focus whilst maintaing the forground in sharp focus.

See low res image attached.

I need the handbalancing girl sharp along with the stands she is balancing on but then for the background to naturally fade to being just out of focus so no spectator faces can be identified.

Ideally I would like the edited file to be supplied back to me as a layered PSD file so I can open it in photoshop and make further changes if required.