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Too broad
This thread was initially started with the idea of the contraction of a league that was in trouble. There are 6 (there were 7) dead teams in that league. Contraction from 24 to 20 will increase the talent pool. The 2 teams not absorbed by the league, in an effort to induce new players, should be given the first crack at the additional talent - it seems that stands to reason. A follow-up draft in order of need will automatically act to restore some of the inevitable imbalance that occurs, as is the intended case with rookie drafts.
Contraction is not really the way leagues want to go - once at 20, there is no going back to 24. What happens when that league has 5 new dead teams? With no more room for absorbtion, is the next step dissolution of the league? To make the contraction of one, or however many leagues it is deemed that this is a positive step, the sounding board for some forced arbitrary evening out of the entire state of PB was not intended. It sounds like a "The sky is falling" response.
Once again, I think a case by case look at the leagues themselves with imput from the individuals FROM that league acting in what they deem to be thoe overall best interest of THAT league, is the best solution.