In the example above, the team with the large arena will always be penalized for less than the full amount of the gate receipt tax, while the team with the small arena will eat all of it.
If i was a 1 or 2 year old team, I wouldn't be expecting to compete with teams that are 4-5 years old.
I've had my team for 2 full seasons now. At maximum prices, I barely started tipping full attendance of my original arena midway to the season. I have been expanding ever since, and I am maintaining full attendance at maximum prices right now at 5700 seats or thereabout.