1. Find a good resource about the old NASL, and it will show you why a pure free market system doesn't work so well. In short, when you have many teams chasing the few and the gap is so wide, the many end up bankrupt, and the league ends up dead.
2. Conceptualize it this way: What is the value of a single soccer team? Zero. It takes two teams to play a game. It takes a whole league to strengthen each individual club by raising pooled TV revenues, by increasing the value and intrigue in the competitions, and by increasing the talent pool. NYCFC benefits from a strong team in Houston, in Minnesota, in Orlando. They are interdependent. And therefore, the test of progress isn't whether we are able to strengthen the strong, but rather to promote the floor.
3. The correct answer is somewhere in between our stances.