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I'm not sure this is right. you can have a 100 round draft it wouldn't necessarily mean 20% of that pool would be good. Try it and find out. Look at it from the opposite end. I have 3 levels of minors so I only have a 15 round draft as suggested (5 rounds for every minor level). That doesn't my league over the years will have less talent just because it doesn't have 7 levels like a real league does.
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