This is only going to end negatively if the bully has the tacit approval of all their peers. It's made clear by Matthew that the bully's behaviour was tolerated

This is only going to end negatively if the bully has the tacit approval of all their peers. It's made clear by Matthew that the bully's behaviour was tolerated, so all likelihood is that he would be criticised for rocking the boat, potentially ostracised. At best he would get approval for it, but only in private with a "I will deny this if you say it out loud" disclaimer. Ultimately this would reflect worse on Racket's leadership team than it does on Matthias alone. They're all okay with it. If this was operated as an organisation then there would be some accountability. This is all innocent until proven guilty, of course, so it boils down to how the racket team responds, if they do.