I guess Ill concur with everyone else here. Team 1 isnt a cellar dwellar but I can see why you arent doing as well as you would expect. You need to get some more speed guys. Im guessing that if you break down your team you are killing in home runs and rbi but losing every week in 3b, runs, and stolen bases on the offensive side of the ball.
Your pitching is great and while Sheets may not come back and ever be a dominating force I dont think you move him for just anything. You have some obvious holes there but I think it will come around.
As for team 2 I think you just need to be patient. Your team will come around and you have some good balance.
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