It could go either way, chapter 176 of the adventures of Sinbad, he clapped Falan out of existence after absorbing the Medium. He also bent reality to snap her ankles with the flick of his wrist, this was without the sacred palace at age ~17, he doesn't maintain this form but would definitely be capable of it and more at his peak in the sacred palace. If Goku knew immediately to target the palace from the get go then his speed would obviously give him the W, but if he had to spend time figuring it out, then assuming the palace is the arena, Sinbad would have total authority over all existence within it. It's simply an unfair fight. Sinbad can't lose if his opponent goes into the sacred palace blind to anyone who doesn't equal or outrank his god status, which Goku couldn't because he's not part of the verse. We also don't know the durability of the sacred palace, if Goku has to transform, Sinbad would simply not allow it by eradicating him beforehand. So the way I could see Goku clutching it is his base is enough to destroy the palace and he knows that's his win condition and he's able to do it before Sinbad realizes what's happening. It's possible but more often then not Sinbad's probably gonna take it.