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Since you reviewed the film....Based on your response how could this possibly be an illegal formation? Because the call on the field was an illegal formation, but your description of your "film review" details that there were more than enough players on the l.o.s.
If 5 teams elect to move up to 5A, there would be a district with Calloway, Hop Central, Madisonville, and Hoptown. Probably a long shot but, logistically this just makes sense.