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The ratings are not really changed, but performance can change based on the pool of players and the league totals.
If you give every team in 1921 a copy of Babe Ruth you should not expect them all to hit 59 HR. In fact, having 16 copies of Ruth in the league would probably knock them each down to like 8 HR or something.
The system is dynamic and accounts for the talent available in the league in order to produce the historical rates.
There is no issue with how this works.
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