in the episode 123, when Twilight Ogre guild came to take their money from fairy tail, after one of their guys sent Macao flying, why did he ask Fairy Tail not to touch them? I found that pretty ridiculous, I mean for what reason would they prevent them from fighting, doesn't this make their guild look even more pathetic?
Fairy Tail needed the money. For the past seven years they tried to keep their guild alive as much as possible. They could have picked a fight and might have won this round, but if they had, the guild would have been completely destroyed shortly after by Twilight Ogre. Master Macao, The Fourth, did not want to risk this as they didn't have much job opportunities as it is, let alone if they had to pay for hospital expenses and repair expenses additionally. Also Fairy Tail was indebted to Twilight Ogre and it is not really in the guild's policy to steal money and to repay your debts. That's why the Fourth accepted their faith and punishment and by doing so he kept their losses at a minimum, while keeping the guild alive as long as possible.