The loser works a full volunteer day at a nonprofit the league selects, food bank, park cleanup, animal shelter, with photo proof in the branded volunteer vest. Some leagues call this option 'Mother Teresa' on their punishment menu. The loser usually admits afterward it was the best punishment they never wanted.
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.