Firstly I don't really know what does semantics(google says the study of words but idk what it's supposed to mean) mean, secondly You mention a point deduction system if team's players do something they aren't supposed to, but here it's not about a team's player but the team itself.
Also, I understand what you are trying to say but we don't know what went internally or how severe the case was, so if they decided to remove a team then they must have had a pretty good reason.
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My personal thoughts: from reading some of these comments I think they didn't pay the players salary on time and according to riot they built this franchise league to have a good system where there is contracts setup and all parties involved recieve paycheck on time and many more things(this was said when franchising was starting in 2023, you can read this stuff from various sources) and I think not doing so is kindof a bad thing especially in a system built to prevent it