Maybe it is easier to say it this way:
For small leagues, less than 19 players - they get a small point equalizer to make them more like a leagues of size 20. So if you have only 6, 12, 18 player ...
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Maybe it is easier to say it this way:
For small leagues, less than 19 players - they get a small point equalizer to make them more like a leagues of size 20. So if you have only 6, 12, 18 players the winner gets the same points as if they won a 20 player league. Get's them closer to the majority of the leagues, encourages players to play a small start-up league and helps that league grow. Most of the leagues fall into the middle tier and simply get the points based on how many people they beat - all the way up to 59 players. At 60 players the top points are capped but that's a lot of points and no one can get more for a single league round unless it's a HLW. Now that also means unfortunately that there are more at the bottom of the big leagues that just get the 2 points for participation but that is motivation to work to get to the top or at least up further. I hope that helps describe the actual impact and reasoning behind the three tier approach.
The struggle is trying to apply a single system to all the different size and types of leagues. Hopefully one day soon we will have singles PS, Doubles PS, Divisional PS and they can each have a different system if desired but it's great to have something that we can pull all the leagues together so everyone in the state can see who is doing what.