First of all lets make it clear.... Number 1 and 2 are automatically in the R3PL unless they cannot play at which point number 3 and so on have first dibs. Recently R3PL has been looking at 12 teams per league which means in a 4 state league the top 3, however they have "recognized" not all number 3s are equal.
A knockout round is used in the olympics and many major tournaments, not everyone can be wrong....