The loser performs a dramatic public reading of league-selected romance novel passages, full character voices required, at a park, bar, or league event. Pausing to break character resets the passage. The league selects for maximum florid prose.
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