I had a similar situation but I granted the timeout.
A1 gathers a loose ball near the division line and has possession. I am right next to the coach who starts yelling timeout. As I processed I was ready to grant the timeout A1 lost possession of the ball.
By the time I blew the whistle the appearance was he lost control of the ball. But I granted the timeout (in my head) before this happened.
Nobody complained either way.
Some have to realize that just because the whistle is late doesn't mean the call is wrong (or blown). Officials are human to and immediately blowing the whistle for something isn't going to happen.
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