A auction $260 fee would be nice since it matches most auction numbers, but that is too rich for my cheap blood. $26 would be right up my alley. That's a nice number, and rounds nicely with minimum and incremental bids = 10 cents. I spend more then that on mags and books.
At the end you just divide the prize money. I like top 3 at a 4:2:1 ratio. For a 12 team league at $26 per team, the prize money would be $312 and the take is:
Not too bad for a $26 entry.
There are plenty of leagues with entry fees. After taking any real league costs off the top, e.g. Yahoo Plus, CBS SPortline, etc., why not use the rest to represent the auction money?
Of course if your talking wide open Steinbrenner free for all type bidding, I agree that's crazy. "I'll start the bidding at $1100 for Utley!"