gin, the problem is, if you leave the league in a year or two, your lack of signing young talent will screw the next guy to take your team. It is the same thing. And what is wrong with sucking up a couple of bad years to build a team that was, in your words, "**** in season 1"?
It sounds like you have gone for the quick fix as well. The only difference is that you claim you are staying and the other guy is leaving. Of course, he hasn't even yet. Jumping the gun a little?
What you say about him may be absolutely true, but you bringing it up and making such an issue of it is a little ridiculous, based on your current budget.
And lets be serious. people dump leagues for all sorts of reasons. Further, if people want to sign players to dumb contracts, I say, good for me and the rest of the guys in the league. And the next guy to take that guys team gets a challenge. What is wrong with that?