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Hey Mumbo,
I'm not sure I can recommend whether or not to use the budgets. But I tried a few times and then turned it off. With the budget on, it constrained my drafting, even though I typically draft relatively cheap (lots of youngsters). I also didn't notice that much difference in the drafting by the AI with it on. But to each his own, and I suggest trying with and without it to find your personal preference.
The way the teams markets and financials work is that after the draft finishes, the salaries are added up and the financials are generated based on the actual player salaries (rather than anything related to the budgets). The higher the player salaries, the bigger the market to support that expensive team and vice versa.
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