I'm not sure I understand it perfectly, but there was the following from
the announcement of the 16 in '16 tournament:
Quote:
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the unique Historical Series feature allows the teams to play in a fashion that represents a selected year/era. This calculates the player ratings (normalized against each team’s specific year and then adjusted to the era) and sets up the league totals as well as the strategy settings, including rotation size and strategic tendencies. So, when you have the 1927 Yankees play against the 1996 Braves and select 1927 as the era, the Braves team will behave and perform as if it was 1927 as well.
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So, I take that as a, no, it doesn't "level" the playing field, but maybe others would interpret it differently.
And just to check, when I load that screen for "Game Era & Strategy" I see 3 options: "default modern era" and then the two years for each of the 2 teams selected.