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He reported whole incident about this to Hokage.
Next day Hokage arranged all Jounin's meeting. He explained what happened with Hayate and Baki.
Jounin 1: "So should we cancel Chunin exam."
Sandaime: "No we can't. Orachimaru indicated that it can't be cancelled, basically threatened use not to cancel exam. All the allied nations are participating and it will send bad message."
Homura: "What do you mean by that?"
Sandaime: "Orachimaru already has power to conquer small village. Since he left other villages must have eyes on him. He has huge amount of grude agains the Hidden Leaf village. Any village would want him."
Jounin 2: "You don't mean Orachimaru had already conspired with other village to bretray us?"
Kakashi: "Do you even need to ask? Aliance treaties are just promises. There's nothing stopping us from breaking it, same for out aliance villages."
Jounin 2: "You mean Sunagakure."
Sandaime: "Let's not go there yet as we don't have enough information, but yes. Still don't overthink it, Our enemies might want us to think that. Also, I trust you all. If worst comes to worst, we will put our life on line to protect Konohagakure."
Listening this all Jounin's expression changed.
After some days, in Konoha stadium, Quite a lot of people has come to watch genins fight. Many feudal lords and vips from many countries has come to watch. As Ikki and his team entered the venue, they can see what a granuour this competition is. As they were waiting in competitor's area, Genma Shiranui entered middle of arena.
As Team Orca entered waiting room, sorry only Chikako and Ikki entered, Chikako literley dragging Ikki through doors.
Chikako: "Why are you causing issue now, didn't you trained 1 month for this."
Ikki: "I just realized how screwed up I will be if I participated."
As they were speaking like this, one leg pushed Ikki in.
Tatsumo: "Don't cause trouble now, and how you can be screwed up."
All participants are seeing this comic scene.
Ikki: "I just realized, If I won this tournament, I will directly made in Jounin, and I will remain Team Leader, Not just Team Leader, I need to take more responsibilities. That would be quite drag. So I reject this tournament."
Chikako: "Don't joke around, no way in hell they will directly promote you to Jounin. Might be Tokubetsu Jounin. That would be max."
Ikki: "Don't joke around. It would be same thing. Better be I don't participate at all."
As they are bentering, Participants started to talk. All participants are laughing, how this comic guy can win, but they don't realize one thing, proctor of this tournament is sweating crazy.
Tatsumo: [Fuck, I know this kid is joking around, but subcounsiously he realized how Sandaime is playing him. Its good Chikako would make sure he enters the tournament otherwise this would have played quite differently, but scary part is if he already realized this plan then!!!]
More sweat started coming out of Tatsumo's forhead.
Tatsumo: [Need to talk with Sandaime, otherwise Ikki might play whole village one day.]
Rejecting any more thoughts, Tatsumo entered the arena.
Seeing at Sandaime side, who is already seating with Kazekage, Tatsumo rotated 360 degrees one time,
Tatsumo: [Loudly] "It's been quite some years since I witnessed tournament, and quite large years passed since I participated in one myself."
Sandaime: [Matter of factly] "You won that one doesn't you."
Tatsumo looking at Sandaime: "Yes, after beating you."
Whole stadium got shocked listening to this.
Sandaime nodding: "Yes, our fight was quite exciting."
Tatsumo laughing: "Without remainnig in past let's start the journey for new Shinobi who is eagar to perform for you. [Except for one]"
Kazekage to Sandaime: "If I remembet correctly, he is..."
Sandaime: "Tatsumo Sadeki, 1st generation of Samurai Ninja, First Black Fang of Konoha."
Hearing this Kazekage nodded.
Sandaime doesn't realized but Kazekage started to sweat. Sorry, not Kazekage, Orachimaru started to realize things can get avery.
Orachimaru: [Why is Tatsumo san here, things can bad if we don't play it right. I only see him fight ones and that scared hell out of me that time. And now he is officially unknown variable. I thought some other proctor will take over. But this...]
Tatsumo: "First match: Hyuga Neji vs Uzumaki Naruto"
Match went exctly as its gone in original series, that's what you must be thinking. Its not. From the start, Naruto started spammin "Taju Kage Bunshin No Jutsu". In some time, Neji got tired. Then happened "Talk no Jutsu".
Second match, gone same as Original. Shikamaru at last gave up on match, creating stadium wide face plant to the ground. After that match came match with Sasuke vs Gaara. But as usual because of cursed seal, Kakashi already notified Sandaime so they made Sasuke's match as last one.
Tatsumo: "Next Match, Ikki vs Dosu Kinuta"