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No, you don't understand. Say every team below 1500 drops out and you're right at 1500. Every single team in your battle group is better than you. You're not going to keep going down and down unless you lose every single game. Say you play 12 games go 4 and 8, you'll only be playing teams that are higher ranked than you so say you lose 10 each loss and gain 20 each win. Then you'll still be a 1500 team. This is the most fundamental core of how the arena ratings system works, and nearly every system like it. If you can never ever beat a team better than you, sure you'll drop a little bit, but only a very little bit because a loss to a team much above you won't cost you much. Say an extreme example that you are so bad that you can't ever beat any of these other 1500 teams
How about a different example. Why isn't the top ranked team at 10000 rating? For the exact same reason why even a terrible team isn't at 0 rating. Unless you have a perfect 100% win ratio, you can't go too far because each win is a tiny number of points, each loss is a huge number of points, and everyone has bad luck with the RNG or screws up, or DCs once in a while.
Sure, maybe a 1500 team will drop to 1450 points, but those 50 points didn't just vanish into the ether, they're going to help some other 1500 team get their bracers or whatever it is you get at 1550.
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