they got denied because they would not meet all the requirements. Like you need to take a bus at the tier 2 level. USPHL teams objected to this because of how close rinks are and it is $1000 per game for the bus. How much billet the charge can be was an issue. also some others.
Because it's not a sustainable business model. The league would fold. Cannot fund through youth programs because people are not willing to pay more so older kids can play for free. Too many other options out there now. The end of the day it was a flawed model from the get-go and USA hockey will not let this happen.
But elite hockey is watered down with tuition players. Need this league to work so i can tell everyone that my kid is premier which is better than elite which is better than select which is better than town.