There was a good thread by BoDork this morning on this topic. https://twitter.com/Bo_Hoogland/status/1737787907430076680
Also if you want a fun read, https://twitter.com/Tanizhq/status/1737798066407604313 . Him starting off the post with, "This is wilfully ignorant at best." is pretty funny.
There's no reason to think that an org would be rejected from ascension for any reason other than their actions. From what's publically been released. TGRD didn't sign the contract that they were presented at the beginning of the year, not because they were not financially stable or Riot didn't like them. It seems TGRD tried to use it as a bargaining opportunity to try to get team skins, which apparently weren't in the contract.
The reality is that NA salaries are way too high, and a big reason for that is the players choosing to live in some of the most expensive areas in the US. It's not the only factor, but it's certainly not something one can ignore.