I'm pretty sure it said until they beat a top team. Not "losing by one at halftime". There's nothing wrong with being in the second tier. Kids will play against great competition and improve. They are a very good team; however, I'm just not sure they should be included in the top tier.
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According to your logic - the HBs shouldn't be in the top tier because they have NEVER beaten the Bandits. Guess they should be in the second tier as well. Please use common sense. Again, competition is good...