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I think for Tier 1 Black for squirt major and better, any team with a winning percentage of .500 that current season should be exempt from parity. It is a waste of time and money and detracts from identifying the next best group of teams to fill out the division.
This is straight bull. We shouldn't pay more money to be in the league. Just 2 divisions North and South.
An organization may have 1 go for black. If they don't qualify then 2 teams can go for white. They may also have a silver. If both teams make white then it is 2 white and 1 in silver. If only one makes white then it is 1 in white and 2 in silver. If they can't even qualify 1 team for white then they are playing in the wrong league and all of the coaches and directors should be fired.
All of these quotas just serve to make the parity process less efficient. Who cares if there are two Islander teams in black if they are both good enough? Enough with the regulations, just let the "market" take care of things with wins and losses as the sole criteria.