BIG BAD WOLF: Sounds good.
I prefer #2 idea better like you do.
I also thing there should be an option for players where they can add whether they are available to play a match or not, an active/non-active box they can change on the team sheet. Some players may be going on holiday or not want any more games as you say. This way the Captain would know who to pick from, it would save players leaving and re-joining Teams.

Time is the only issue i was thinking of. At present there are some players who do keep Tournaments running as they do not move till just before there time is up for a move. I can see this irritating some other players who would like to get on with Matches. I think either 3-4 days per move or have 2 sets of Stairs, one Fast & one Slow or use the Fischer's clock to set how long a match should last.