I would say, just let him do his thing.

If you are afraid about the A-group of your lbs then send him to a club to train/ride with the people of the club instead of the LBS. What I learned so far is the guys who race are often more relaxed during training then the guys who do not race. Because the guys who race use training for training and not as a sorry excuse to race eachother.

And the bike ... I think the suggestion of Offthegrid to look for a second hand for the first year is not a so bad idea. If he still likes to race by the end of the year and wants to do another year then you can look for a new one.