User blog comment:Tutles/Episode 117: Thunder Crashes Review/@comment-2106167-20120211114129/@comment-3987368-20120211135822

Prior to fight FF arc, his rebelliousness hit a high point when Ivan was exiled at an unknown time and Laxus threatened to leave and destroy FairY Tail with him. Allowing him to be an s-class could've been Makarov's way of choosing the lesser of two evils.