The same way a show promoter is allowed to tell a dealer that only vintage material can be displayed and not shiny stuff, or to say no beanie babies are allowed at the show, Leon is free to prohibit these cutouts from the BST. It has nothing to do with ethics or anyone's right to cut them up, it's how he wants the board to look. It's his board, so he decides. He is simply taking input to help come up with a decision.
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