they will have the same problem in district 1 if Happy loses to Nazareth on friday, because then Happy, Nazareth and Springlake Earth would have a 3-way tie and they would've all beaten each other
I expect their rules are written a little better than these. If not, I expect there to be a district meeting before the game this week to get it all straightened out so there's no confusion after the games are played, especially after seeing how all of this is playing out in district 6.