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The 5:1 ratio can accommodate many more players. The way the skills practices are crafted, work best with 35-40 players on the ice per session.
I like the idea, and from what I was told today, the league trains and employs their own referees, which keep consistency in the games.
Especially at peewee major and bantam levels, the in league practices and games, with in league refs, eliminates a lot of the BS that can happen at these ages.