The more a team loses games, the more players they lose to the winning teams?
Sounds just like Major League Baseball to me. All the small market teams can't resign their free agents because teams like the Yankees, Braves, Giants, etc offer them 8 and 9 year contracts worth 10's or even 100M+ and so the small market teams are just pushed deeper and deeper into an abyss that they can't escape.
If you want to run your fantasy league like the NFL, which has almost perfected parity and equity amongst teams, then you need to trash this idea.
If you are really are George Steinbrenner logged on under an alias, then this suggestion makes sense.