That depends on who the actual judge or admin in this case is. If it's a guy like Robo or Charzini who have proven themselves, I don't have a problem. If it's Nili and it involves GL members, then that's a clear conflict of interests.I'll try to explain in a more elucidative manner:
Let's suppose I filed a lawsuit against you. Then you discover that the judge, coincidentally, is brother of my attorney. Would that feel good to you?
The situation is similar here. If you're in a tournament and some of the contestants are really, really close to the organizer, obviously you wouldn't feel good about that, would you?