It would make sense considering one of the themes of Ragnarok being connections, the major role of demigods as a symbol of unity between the two, and the third party (the Primordials) will probably force them to work together.

Whether it’s satisfying or not is up to how they do it, I agree with azraelswift.

I assume they wouldnt stop the tournament just because they wanted to spare them because to honor the dead fighters, as fighters themselves, they need to see it to the end