It doesn't really matter if the tassels stick out. But if it bugs you, then you can just tuck them behind the body of the pennant. The plastic sleeve will hold them nicely in place behind the pennant.
When hanging, use tiny brad nails that barely show, and push them through the plastic cover (but not the pennant itself). There should be enough excess space around the perimeter to do that.
An alternative to the tiny nails is to use Velcro behind the pennant. Quite a few people here do that, and it gives the pennant a nice "floating' effect. I personally have not done it, and am not sure how easily the Velcro can be removed from the wall. Perhaps it peels right off, but I would be leery of it pulling off some of the paint. Perhaps others here can comment on that.
Best of luck, whichever route you take!
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