With a cooperating venue, the league's favorite bar is traditional, the loser works a full custodial shift: mopping, wiping tables, restocking, in a name-tagged uniform reading 'Last Place'. The league drinks at the bar throughout, generating mess. Tips go to the pot; dignity goes unrecorded.
Budget note: this one costs nothing but dignity, which makes it a strong pick for leagues that would rather spend the pot on the champion than on the loser's downfall.
Seen in the wild: fantasyfootballunlimited.com