I tend to wonder if rumors about other teams are present at every gym. I can understand how these rumors start.
Here's one way it could happen: My daughter once came home and said her coach told the team, "We are competing against Powerhouse Gym this weekend. Powerhouse Gym will not bring any gymnast to the meet unless she points her toes." My guess is that Powerhouse Gym probably has high standards for allowing girls to compete, and this comment was intended to motivate my daughter and her teammates to point their toes, but this type of comment could easily snowball into a crazy rumor if slightly misrepeated by a child or parent.