It's not just the ones that get relegated. The ones that stand still also lose their better players because they stood still, and then they have to restart from scratch because they have to get the new people on board who start weaker than the old. This happened to my kid's second team...they were constantly missing out on promotion by 1, they'd lose the strongest players that got recruited elsewhere, they'd have to bring new people and start from scratch, rinse repeat. It means that winning and losing become everything. The only way that works is either: 1) you make it less important so people don't care (take college out of it; no big cub pay days; like Latino league), or 2) you tie teams and players (like highschool transfers...you are stuck where you started and you have to dance with the one that brung you, unless you physically change addresses)....both clubs and parents would hate that because it means you have one bite at evaluating the player/club and then you are stuck.