Definitely on the sideline. The red player is in first and his step is clearly outside the FT semicircle. White then enters and he too is wide of the semicircle.
The real question is what to do if one is inside and one violator is outside or the first is a defender in a marked lane space and the second is a player outside the 3pt area and the "rocket ship". I believe that I have a good answer, but have never seen it detailed anywhere.
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