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I keep hitting the enter key by mistake...
Contraction isn't a solution unless you drop entire leagues and give the existing managers franchises in other leagues [if they would take them...] or combine 2 leagues and do a new formation draft.
One major problem is lack of managers and no launch leagues to recruit new ones.
Another problem is someone has to lose but there aren't too many managers who like being perennial losers (I'm guessing). Thus after 2-3 seasons of losing, managers drop franchises and someone looking for a new franchise isn't usually anxious to take on a really lousy team knowing they'll lose for at least 2-3 more years.
I hate the contraction talk because I really think 24 team leagues are more realistic and more interesting.
Personally I'd rather be in a 24 team league with 6 unmanaged teams than in a 20 team league with 2 unmanaged teams (18 managers in each).