Yeah, colonial tunicate comes to mind. Do you see any tiny openings?
Steve Tyree said this during a MACNA XIV in 2002 presentation (as written by Kevin Kuykendall in Reefkeeping online):
When attempting to identify whether an in-tank mass is a sponge or a colonial tunicate, he suggested taking a look at the spacing of the openings in the surface of the animal. Equidistant spacing of these openings is indicative that your animal is a tunicate and not a sponge.
Dr. Shimek's article on Tunicates
Any chance for a closer shot?