For a martial arts sect, reputation was extremely important. Losing signified lesser skills, and practitioners naturally gravitated toward stronger martial arts, rather than picking weak ones. In the case that the reputation of losing was to spread, White Cloud Gate would be finished.
All sects, regardless of size or strength, would not generally want to compete throughout the entire sect to conclusively determine the stronger sect. If met with such a situation, someone must be picking a fight.
The real strength rankings may be an open secret, but publicly determining it would be interfering with the livelihood of other sects. Such an action would invite lethal revenge.
