There are tournaments in Kansas that follow those rules. Normally, it states that in the invitational letter. We've attended a dual tournament that allows for a "combined" team to compete in it as well. They take several JV wrestlers from the various teams competing in the tournament and form another team from them. For those who argue that some kids from JV teams could be state qualifiers if they weren't stuck behind a "stud," this is a great way to show that depth. If both kids are good enough to win matches in the bracket, then, yes, it does take points away from someone else. In the same breath, it also gives more competition time to some who wouldn't get the chance at the full compliment of matches a varsity wrestler might.