Was Father O'Malley afraid of that kid?
Ok, in the scene where the bully and the nerdy kid were fighting, Father O'Malley holds up the bully's hand and proudly declares, "The Winner". The nerdy kid is clearly upset O'Malley finds the bully "the better man". Yet, during the second fight, where it's obvious the nerdy kid has developed some rather impressive pugilistic skills, Father O'Malley clearly stays out of it. Is it possible he was afraid the nerdy kid might want revenge for O'Malley's earlier comments?
So, to sum it up in legal terminology: Get lost, you bum.