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Not necessarily true
It is not necessarily true that a neglected team is paid. It is my premise that most of the neglected teams are neglected because they are free. Moreover much of the overt sandbagging -- and the covert sandbagging that comes through neglect -- comes about because the teams are free. The manager with free teams openly puts several out to pasture for several years accumulating talent while making no attempt win. Eventually the teams become good, and the manager says "look how smart I am!"
To any new manager, the system means that they must put up about $300 and wait at least three years before they can attempt to play the game. If he chooses to start with one of the abandoned teams and play competitively, he can achieve .500 or even playoffs while not improving his overall talent; he cannot compete in the playoffs.
That is why I am suggesting that Mike accomodate all his committments for unlimited free teams by putting them all in free leagues -- where its all even. Keep the free teams away from the paid ones and the game will be more interesting to new managers and the leagues will be more vibrant. Allow the vibrant leagues to vote-out the neglegent and perhaps-sandbagging owners. It would not be hard to fill the vacancies as these leagues would be the most in-demand.