"Parity" issues can greatly affect competitive balance in leagues, as they determine how evenly matched teams are. When there's a significant disparity in resources, talent, or management, stronger teams dominate, leading to predictable outcomes. Conversely, a balanced league fosters excitement and engagement among fans, as any team can potentially win. League policies such as salary caps, drafts, and revenue sharing are implemented to mitigate parity issues and encourage fair competition.