My thought - to be taken with a grain of salt and maybe a margarita- would be to put 4-5 holes ~1/4-1/2" apart along the flared part, 1/2" up from the edge and lace that way. It allows the safeguard that if the lacing is not what you'd hoped and dreamed it would be you can remove it, and if the removal leaves it very rough, you can still trim that 1/2" at the tops of the punches, 'swallowizing' it minimally. Also having it only 1/2" up means that you'll have enough leather *beneath* the laces to brace the lacing properly and support the structural integrity of the saddle itself.
I'm not sure how it's tied, tho. You'd have to look at that again to see. Another thing you could try is smoother (i.e. flat) shoe/boot laces. They'd be strong and yet lay flat against your leather seat. As the saddle attempts to flare around the stitching it would pull the lacing into it and effectively (eventually) inlay the lacing just a bit, reducing rubbing. ...just a thought.




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