Hi chinadj! I can explain the paint, thanks to Blind Freddy. He read an article and posted that the two returnees are assigned to tribes by breaking open eggs with the paint color of their new tribes. So, more than likely, the tribes are gathered at the Redemption Arena, and the 2 returnees are brought in by helicopter. They are introduced and allowed to draw for the eggs and then crush them. The red paint gets on Ozzy's shirt, and you will note on his right hand as well...while he gets the paint off of his hands, perhaps it stays on his shirt...? It also gets on his left face...
Ozzy runs and jumps into his new tribe in a group hug, while Coach methodically shakes hands with them all (using his "blue" right hand), most likely transferring the blue paint onto them as well. Then, it appears that Coach and Ozzy must start the competition one on one, as we see them doing a pyramid puzzle, digging side by side, and climbing poles. Most likely playing for some type of reward...
You also noted this picture....
I think this is most likely from another challenge, where they are gathered on the mat for something. Note there is no longer blue paint on Coach's hands...