I suppose I could read the manual but since you already have many times, perhaps you can enlighten myself and others.

One wrinkle to this situation is that their 2s teah had already qualified as well. Does that mean that the players on their 2nd team would have been inelligible to be called up to play for the first team? If so, that means they really would have had to dig down the depth chart to find fill in players. In effect, the success of their 2nd team in qualifying made it tougher to fill gaps on the first team and perhaps led to that first team sending that bid back.

TeaWB, you are right on that they could have gone with 9 players. And apparently they were willing to do so and told USAV that. In light of the fact that they couldn't call up players from their 2nd team, they most certainly would have had to go with the 9.

Blue, your posts have always been so poignant and right on in the past, but you appear to be intentionally missing the point on this one.

"Po-ta-to, Po-tah-to" you have got to be kidding
(perhaps just to keep the thread alive. Any way, I will bite on that tuber).

The two critical phrases here were not Declined and Turned-back-in but rather
Declined (as in unilaterally refused to participate) and Offered (as in willing to live up to their responsibilities and follow the decision of the USAV).
That is not pronounciation, that is polar opposites.

And since you so desparately want the results to match the rule book, here is an interpretation for you.

Sunshine will get no penalties because they are not in violation of your oft quoted rule. Sunshine DOES NOT have a bid. USAV took it back and gave it to someone else. Since they do not have a bid, the wording that you have quoted does not apply and there are no penalties appropriate.