Okay, I think Mike's concern is that you have a reallocation draft AND drop to 20 teams, the teams that are drafting will be drafting from a richer pool and could suddenly become contenders overnight - whereas those players who built and struggled with their teams would suffer (am I right Mike?)

Here's the solution IF you want to use the reallocation draft (needs more than 4 teams unmanaged to work).

1. If only 4 teams are unmanaged, FOLD them and throw all players into the FA draft. Wow - great draft this year!!

2. If more than 4 exists, announce the draft.
3. Allow managers to join
4. Throw all players into a pool
5. EARMARK 4 teams that will be DISBANDED after the draft
6. Determine random draft order
7. Hold the draft
8. Once completed, disband the 4 teams and place those players in the free agent pool.

You are down to 20 teams.

By allowing the four teams "earmarked" for contraction AFTER the draft to take players, you are effectively decreasing the pool size for the remaining teams to draft from, and are keeping the "new" team competitive at a 24 team level. Once the draft is complete, you can the just disband the 4 remaining teams and place them into the FA pool.

And before the 24 team league owners suggest that the talent pool in a 20 team league would be too rich - remember that there are already several 20 team leagues in existance :D