We overlook this at sub-varsity levels but are crystal clear with the coaches before hand. Actually, it makes it more difficult to officiate because you need to really commit to memory who is and is not eligible.
For midgets, the league has asked us to officiate the rule this way due mainly to budgetary constraints, especially with the youth leagues. The thing we don't allow is for two players to participate wearing the same number.
We've been told for Frosh and JV that some schools don't have the budgets to properly number all their players. So, I just go with it and again are up front with coaches and they have always been OK with it.
Communication is key.
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