You CAN choose to produce players drop their items when they die. We should not let players abuse this minigame for transfering items to RS gold each other, so others won't have to collect the loot, but it is going to make the conflicts a reasonable bit more insecure. If you're in a really wealthy clan that does not mind risking its great armour, you can use this to provide yourselves an edge over clans that daren't fight in anything pricey.
However, what's the purpose of falling items if the other side cannot accumulate the armour, therefore, I have a small proposal. When one clan challenges another clan, they have to first pay 1/2 of the price of the armour they are earning, however, when you die, every item has a 1/5 possibility of being ruined. The"kettle" or the lump sum that's collected from the cheap RuneScape gold side is distributed accordingly.