I'm going to comment too, if I may, since I agree as well. Our gym places everyone who comes out to tryouts, which is great. We have rec and competitive programs so there's something for everybody.
However, they also accept athletes VERY late into the season - like now. CP's team has their first comp in six weeks and new kids are still coming in. I feel that hurts the team's chances for success and also penalizes those kids and parents who came to the tryouts back in the spring, paid their fees on time, and came to all the summer practices. I guess the policy benefits the gym owners, though, because...ka-ching.