Asides from the spectacle, which would make the competition even more interesting, there arent a lot more benefits from it. imagine TL, who invested a lot of money on their actual roster, or any other org, in some scenario where they get relegated because of a bad season (possible, any org can have a bad season) the economic state of the team would just implode and collapse the whole scene, making big teams scale more and more far from the little orgs (if thats happenin on franchising rn imagine this scenario), and the big ones who get relegated would just retire from the game because of the big waste of money and the lack of results.
The tiny orgs wont be able to compete against teams like fnatic, prx, etc. because they wont have the money, continuity or interest on doing it, which is pretty important on the esport scene because of the little amount of money these orgs make per season (its not like some big company or firm would just save them, this aint football. Companies like valve and riot are the principal fountain of money from these esport teams, which is kinda sad when you just take a look at the actual scene of the teams without suitable bussiness plans like again fnatic, prx or c9, who just dissapear after some years/months).