If you've got a crap team, either by your own work or you took one over, its very possible you have no players with any value to any other team. Highly overpaid, fading vets and no high-quality prospects, because they've been traded away or underdeveloped.
It might be a 70-80 win team, but it's moving in the wrong direction.
You're basically screwed for 1-2 calendar years while you wait for the vet contract to end so you can start to invest that money on developing young players or more high-priced FAs (or some mix).
No matter how overpaid your vets or how thin your minors, you have one asset that has value to every other team.
Money.
The fastest way to get a bad team turned around is to allow an unlimited amount of money to be involved in trades.
If you've played more than a few season, you've had or seen one a player like this - OK, even good stats for a RF, 30 yr, contract $9.5M for 3-4 more seasons, ratings just starting to go down.
Can you trade him? Would you trade for him? Probably no to both, right?
But if you had him and you could offer him and $20M in a trade, there's probably going to be an active trade market. Teams needing one more bat that have some depth at 1 or 2 spots are likely going to make an offer.
If you don't think it's fair that another team could end up with a good RF and $10M+ extra this year in exchange for prospects, then make a better trade offer. If its such a huge advantage, offer up you best prospect and take just $15M.
If enough owners don't like the deal, they can veto it. Enough veto votes (I think it's 10, not even a majority), deal doesn't go through. Problem solved.
Obviously, money in trades can result in unbalance world for a period of time. So can 6-10 other things I listed a few days ago. I haven't seen anybody arguing any of those should be made illegal.
The difference between money in trades and those other things is money in trades is a good solution to the problems caused by money in trades (if a world fell asleep and let that become a problem.) Fastest way to let a good owner fix a bad team is to let him do whatever he wants with the $185M everybody gets every season.
Short-term imbalance in a world isn't really a problem. No matter what the rules or limitations are, one team is going to win the WS and one is going to get the #1 draft pick.
Long-term imbalance is. There are several current rules that tend to result in long-term imbalance. You can make up ways money in trades is part of that problem. For every one of those ways, money in trades is the fastest solution.