It's all about what "type" of league you are (money. fun. etc) AND, eseentially, who runs the league. There are countless optionsfrom minimal differences in payouts as you mentioned to $$ stacked at the top, as mentioned above. If it's a reasonably run handicap league, the prize list should be voted on. Usually, submissions are recd from 3-4 persons each on different teams and each team with one vote. But you can always use something like this:
1st place 30%
2nd place 20%
3rd place 10%
4th place 8%
5th place 7%
6th place 6%
7th place 5%
8th place 5%
9th place 4.5%
10th place 4.5%
But again, with countless variations on # of teams and available prize $$, you can spend all day on what is best and what is fair. Remember, unfortunately, that some teams will quit if they get no $$ for the bottom. I've found a dramatic difference in league prize fund distribution when I moved from the Northeast to the South.
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Just bowl!