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A League Association merges the free agent pools of the member leagues. They also use the same draft pool. By forgoing the usual major-minors setup, you can define independent financials at every minors' level.
As far as the spread of major and minors are concerned, you must consider that in late 19th and early 20th century the difference of the league levels were much smaller than today. Baseball historians also note that the early major leagues were far from fielding 100 percent of the coutry's best players. Various minor league teams were considered to be stronger the weaker major leagues in selected years. Therefore I can live with the fact that some good players play in minors in OOTP.
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