An idea: how about that Nick wins the first fight with Damon, therefore Humiliating him (I've written that when you lose in The Hole, you are Humiliated and to bring back your reputation you have to defeat the one who Humiliated you, in The Hole), but they have a rematch later and Damon beats Nick. However, in the third fight, Nick can either beat Damon, or it can be a draw, so no-one is Humiliated. Also, Damon and Nick can develop a friendship after these fights, sorta like Jimmy and Russell.