Actually they stand to lose money by doing this.
I think that the squads are getting too big, 30+. Coaches are having issues with 1st graders with say 4th graders. The age groups require different coaching styles and you end up with girls at very different physical ability levels. A 5 year old can not handle the jumps etc that a 10 yr old can, and so on. I think its for safety reasons, among others.
It sucks for multi-kid families, but you wouldn't expect your 4th graders basketball team to allow your 1st grader to play for convenience sake.
I'm not a cheer coach, learned this by attending AYSA meetings....something all Anna parents should make the effort to do.