If Tony couldn't handle the situation as the talent wouldn't listen to him, I think he did do right by going to an experienced talent and have him talk to the guy. But I don't know wrestling politics, so maybe he did wrong in the backstage wrestling world.
And this all goes back to you need 1 guy to be THE GUY in the locker room, like UT was in the WWE. And of course Tony K needs to back that person if it goes upside down...