In utility theory (and elsewhere) transitivity is assumed. If A is preferred to B and B is preferred to C then A must be preferred to C: (A>B) AND (B>C) => (A>C). But I have shown situations* where some team A will always beat team B and team B will always beat team C but team C will always beat team A. I.e., in a game between A and B you should always bet on A, in a game between B and C you should always bet on B, but in a game between A and C you should bet on C.
* See my blog of 20 June 2019.