I lean toward "avoid the appearance of a conflict" group.
I will relate a personal experience:
Several years ago, my younger sister was the JV Girls basketball coach at a school in the area. She also sat on the bench for Varsity games as an assistant.
I did not block that school because I had NEVER been assigned one of their games. So what happens...I get a Varsity Girls assignment with her school visiting another school. At that point in my career, I wasn't getting many Varsity assignments, so I chose not to turn it back. I told my partner about it, so he was aware of the situation.
I worked the game with no issues, but certainly didn't feel very comfortable doing it and did catch myself worrying about it at times during the game. One of the things that worked in my favor was that my sister's team was so bad, it really wouldn't matter what I did or didn't do.
Looking back at the situation now, I know that I would not hesitate to turn that game back.
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It's what you learn after you think you know it all that's important!
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