I agree that we should just let people play. Restrictions are just gonna make people resentful. In fact, I just quit another online game (after a bit of an altercation on their forums

) because I got disgusted with all the restrictions I had because I was new.
If a new player is too stupid to realize that participating in a cup with a $1 million signup fee is a bad idea, when they have a total of 1 million in the bank, then there really isn't much to say about that. Players like that are going to mismanage their team no matter what we do.
Anyway, if the player has only been around a few days and makes a mistake like that, they can just delete and create a new team. It's not like they've lost much.
Besides, friendly cups SHOULD be gold mines to A, B, C, and D league managers. If not friendly cups, then something should be. After all, outside of buying and selling players, it's not like upper level teams have any other way of making significant money.