Recycling the better players gives the teams with more money something to spend their mountains of cash on and leaves the rest of the average players for the poorer teams to actually be able to afford.
The conseequence of this will be that money flows from new (poor) teams to old (rich) teams. Because the poor teams will buy players from the rich (thus giving them money), while the rich will buy from "outer space" thus not recycling any money to the poor team. In essence it is the kind of pyramid scheme economy that almost killed Hattrick.
Which is not strictly correct. With the recycling system, the money spent by the rich teams on recycled players has left the system. It's gone, never to be seen again. The rich team has something of value but that's as far as it goes. That asset also has a higher maintenance cost in terms of wages. It also means that the rich team isn't driving the price of the lower quality players on the market, as their focus is now on the better assets. The newer and poorer teams have the power to set the prices on the lower quality players which the bigger teams are selling, ultimately causing them to fall to a level that isn't as ridiculously high as it currently is.
Teams aren't going to miraculously have more money than before - there is only a finite amount in the system. If the richest team has $2million to spend on the best player in the game - two weeks ago that might have been a triple strong, now it may be a quadruple proficient. The triple strong player is going to drop from the $2million mark, which in turn will cause double respectables to be cheaper. Bigger teams are going to have to bite the bullet and sell at an affordable price - which ultimately gives newer teams more options.
Now, everyone knows that a pyramid scheme is a non-sustainable business model, so in the long run this would kill the BB economy too. However, I guess that it can be a good model to use during a short expansion phase, if the transission to a new model is made on time and this transission and model is known beforehand by the users. Is this how you plan to do it?
A pyramid scheme is something entirely different. The way a pyramid scheme works is to continually expand the base of suckers and filter the the money from the bottom to the top. It eventually fails, because there are no more suckers to recruit at the lowest tier. The way our system works is the other way round, money is inserted at the top and allowed to cascade down to the bottom - or disappear ( if a recycled player is bought ). The richer teams make no demands on the lower teams in the way that is the case in a classic pyramid scheme. The two systems only have shape in common, not method.
Commenting on the HT economy and the differences between our models wouldn't be right, and it's not the point of this thread. Everyone in hattrick has their own ideas about the failings of the system and the current regeneration. I don't think it is something that we should discuss in Buzzerbeater, there are plenty of threads over there on that subject.