@permisan They said it would supposedly damage their reputation if they didn't allow the Soul Clan ghoul to participate since it was an open competition. As if bending over backwards to allow an enemy to do what they want in your contest wouldn't by itself damage the reputation far more. Mu Gu was doing whatever he wanted at every turn, practically laughing at the Pill Tower, but like cowards, the Pill Tower folks just kept their eyes closed and mumbled about the competition rules and whatnot. The Pill Tower should be a laughing stock at this point. But of course they will save a lot of face if no word of what happened in that star realm ever gets out.
I said it before that if the Soul Clan was so powerful they could destroy the Pill Tower any time they wanted to, they would have done it already (along with the rest of the righteous factions). But they haven't because they can't. So, the Pill Tower has no reason to allow some random Soul Clan elder to come and cause trouble openly.