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Idea 1 will work, it's what I do in my fictional league. Just make sure each Major league has a Minor League associated to it, otherwise some Minor League option are not available for that Major League. Among other things you lose the ability to set secondary roster size for that league. I have a 3 tier promotion / relegation league with 3 minor league levels (AAA, AA and A) and each Major League has one Minor league associated to it.
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