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You can either have a draft each year (which means all players will enter the game without a team at age 17) or have players join their team when they did historically (so the age they enter the game at will vary from player to player.) You can have development set to either use the full FHM development engine, or just recalculate the players annually to historical levels; the latter setting will mean more statistical accuracy. Overall league scoring levels also vary at the rate they did historically (e.g. more goals in the 80's), so that tends to keep totals accurate.
Expansion will occur as it did historically, yes.
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