This is something I've been tinkering with on and off – and which I might try to run at some point (not anytime soon, but sometime).
Let's call it The Restriction Draft for the time being.
The idea is to restrict the managers in any number of ways, forcing them to assemble hopefully diverse, interesting and somewhat realistic (in terms of strength) teams.
Pool: Unlimited
Format: Snake
Number of teams: 16
Preliminary GOAT-blocking round. Every manager picks a GOAT to block, the usual business – in the end 16 GOATs are blocked. NOTE: This is optional, really. If the restrictions are severe enough, it may not be necessary with any GOAT blocking.
Restrictions (these are just off the top of my head – needs more work to make it ideally balanced):
Your XI must at all times feature players from at least three continents/confederations.
Your XI cannot feature more than X players from the same nation (nations being defined clearly in the OP, of course).
Your XI cannot feature more than X players born in the same decade.
Your XI cannot feature more than one World Cup winner.
Your XI cannot feature more than one Ballon d' Or winner.
Your XI cannot feature more than X representatives of one and the same club.
Your XI must feature at least one player who never played in any of the following leagues: A, B, C or D.
Your XI must feature at least one player whose mum OR uncle was at one time wanted by Interpol.
...and so forth.
A combination of “can't have X” and “must have Y”.
At the end of drafting, the teams will be reviewed. Any manager whose team falls short of the requirements, will be killed. Or at least punished – sheep being the obvious punishment.
Point being – as stated above – to create interesting teams with, ideally, more realistic combinations of players (water carriers, non-descript but competent fullbacks – and of course well known stars, nuggets and wild cards).