But just watch, that's not going to happen to the "good bowlers." As soon as the golden children don't get the squads they want, they're going to grumble about it. I DO like this idea because like Pinbuster pointed out, how do you REALLY penalize someone for slow play? 9:30pm is not an optimal time in your body's sleep schedule, especially if you come from a different time zone, so bowling at 5/5:30 is the best time for peak performance, generally speaking. This IS about the best solution I can think of. Bowl faster, or you're bowling the red eye next year. Any other penalty would likely be too excessive.
HOWEVER, why have a rule if you don't enforce it? Most of the time the penalty DOES need to be excessive enough to make people follow the rules. If it's stated in plain English what the penalty is, and someone incurs it, that should be the end of the discussion. The PBA has a shot clock, first infraction is 100 bucks, second and thereafter is 500 a pop. That's a crapload of money, especially for a professional bowler, but rules are rules, and if it was a slap on the wrist, they'd take advantage.
What should the penalty be if you are slow?
Right now it sounds like you will be tagged as slow and assigned to late squads in future years where you might not slow another squad down.
If you are late and no breakdown caused it should there be some penalty for that tournament?
Being tagged and banished to a late squad in the following year seems appropriate. Realistically, punishment in the current year would probably be impractical.