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Personally I think another problem is that fringe and non-players stick around for far too long before they retire. These are the guys you see at like 29, 30, 31 and older accepting minor league contracts even though they have no hope, and never had any, of playing in the majors.
For the most part these players don't exist in reality because they have families to feed and minor league contracts don't pay well. Since nothing like that is modeled in OOTP you end up with huge numbers of these free agents taking up spots on minor league rosters that should go to more promising players and prospects.
I agree the AI factors largely too but I just didn't have much to add which hasn't been said.
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"The Minneapolis Lakers moved to Los Angeles, where there are no lakes; The Oilers moved to Tennessee where there is no oil; the Jazz moved to Salt Lake City where they don't allow music; The Oakland Raiders moved to Los Angeles and then back to Oakland, no one in Los Angeles seemed to notice."
Note to self: Princess Kenny was really off-putting.  
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