Excuse me if this was explained already, still in the process of reading through but:
What is the point of squads here? As in, are there penalties for making one big squad of 9 people or letting people choosing how they split up?
@eaglejarl already said we'd have Hazou, Noburi and Keiko in the same 9 man team anyway so I am guessing the other six will do the same if they are from the same Village.
Also it seems that being part of the Red Team last is advantageous (so we probably will be Red first) since you can turn in the documents and immediately betray your teammates and hand them to the Blue team for imprisonment. You will still be at least +75 points ahead while every imprisoned genin gets penalties only. Opportunity for retaliation is slim since you will not be grouped up with the same people anymore.