I hope they change it to the format I was suggesting...
Group 1: L1 - L4
Group 2: L5 - L8
Group 3: L9 - L12
Group 4: L13 - L16
Group 5: L17 - L20
Group 6: L21 - L24
Group 7: L25+ Shark Tank Cup.
Makes it fairer on the levels distribution and also at least you know you going to be faced with some competition in every round instead of dead-end pointless ties with 5+ levels greater between teams.