I don't quite understand that crossdressing performer's problem. Who's going to get the 10,000 gold, huh? If he was a free person before, then how come he now suddenly needs to pay someone 10,000 gold to be free again? It seems to me he could just walk away if he knows he can escape. There would be zero honour lost. If he went to Yuxi, it might actually be beneficial for the MC. If someone comes to snatch him back, he could just get rid of that whoever someone. It's better to fight on his own turf than far away. After all, he agreed on the need to fight. So, it would be doubly stupid to pay his enemy 10,000 gold.
Btw, can that woman represent two factions in the competition? Who's the final winner? The dudes need to fight each other after she wins to see who claims the prize. Luckily the MC is secretly strong.