Dakota is correct, playing under championship rules, a team is allowed to (and must) start short handed if they have one player below the minimum. The blank spot is at the bottom of the line up (or "next to bottom" for co-ed purposes) and must be filled when the person arrives, or that person is ineligible to play.
I stress "championship rules"; I dare believe this was a league game and there are most likely league rules that allow or not allow late arrivals and/or with or without penalty.
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