The Director was a d*ck.
I realize maybe his thinking is that an AA player SHOULD beat the A player even with the "cheating". Of course, have to look at effort in addition to results there - he's 12. If he was 17, then maybe you focus on results. But at 12, the kids busts a nut trying, that's worth something. You don't set a 12 year old up for failure by rigging everything against him, and then call him out for failing. That's just stupid. In fact, the more I think about it, the more pissed off I get, and it's not even my kid, LOL.
That said, I also agree with what you told Jr. After all, sometimes the refs are playing for the other team so to speak, and no amount of complaining is going to change the scoreboard. Suck it up and beat the kid anyway.