Time out-clarification

[PP]

In a high school boys playoff game last night(NF rules Mark) 6.7 sec left, 1 point game, A1 leaps from his backcourt to save the ball from going OOB. As he gets the ball, he calls, yells for a time out. The ball is in his hands and very close to his chest. The referee refuses to grant the time out. The coach of team A is not happy. (of course) The referee explains to the coach of team A that A1 did not have control of the ball. The coach explains to the referee that A1 had control since the ball was in his hands and close to his chest and that he was still up in the air. Was the referee correct to refuse the time out considering the location of the ball and the time left on the clock and a 1 point game ? Is this referee being a little to technical on what is having possession of the ball? Now what do you consider is having control of the ball?