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Online leagues in FHM2 are fairly simple, and based on the successful OOTP online model. A user, or group of users, decides to start an online league. One or more of them must become the commissioner(s) - the commissioner runs the league, handling some basic administrative tasks and generally keeping thing organized. In some online leagues, the commissioner also controls a team. If you don't have enough players for a full league, you can leave as many teams as you want to be computer-controlled teams.
The players who initiate an online league typically decide on the league configuration. The commissioner creates the game on his computer, and then provides a copy of the game's files to the other players by uploading them to a specific website. The managers download the game files and then open up the game. Once they are in the game, they can make changes to their teams, such as setting up lineups. Once they are done making changes, they export those changes back to the website, where the commissioner retrieves these team export files and imports the changes into the master copy of the game.
The commissioner usually then auto-plays a fixed number of days and posts a copy of the league files again. This process repeats itself throughout an entire season, and then on to the next year. Special league events such as playoffs, free agency, and drafts are handled in different ways in different online leagues; it's best for the league owners to come to an agreement in advance about exactly how to conduct them. There is no 'right way' to handle these things; generally speaking any complex events like a draft have to be run by the commissioner using his special editing and control tools. But the fundamental process continues: make changes, export, import, auto-play, new league file, repeat.