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eMLB uses incentives but places limits on them. If the limits get broken, the contract gets voided, the player becomes a FA, and the team gets a multi-million dollar fine. I can only think of one bad contract in the last few seasons due to this. Even then, the league let the bad contract stand.
A team offered an extension to a pretty good player worth $30,000,000 if they won the MVP. It was a mistake, and was immediately reported to the commissioner. It was supposed to be a $3,000,000 bonus.
Oops.
Since incentives cannot be edited, it was allowed to stand with no real penalty other than the rest of the league knowing that this player would take home $30m if they voted for him as MVP. There's nothing quite like a Sword of Damocles worth $30m hanging over your head for a couple of seasons to ensure that all your contract incentives are properly handled.
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