I've seen teams split up into first year and second year. Such as 07's would be second year 14u and 08's would be first year 14u. That way each team can grow together as they age up.
I have also seen some do something like a Hittin' Kittens - Black and a Hittin' Kittens - Purple as kind of an A team and a B team.
Personally, I like the age one better with the option of taking STRONG first year players on a second year team or even playing up in age.
With all the options out there no wants or needs to be on the perceived 'B' or 'second' team.
That said we try to have a coach or manager assigned to drive each birth year (at least when the team forms). This normally means they have a kid born in year XXXX - most start out as the head coach and some stay on as head coach while some moved it on to someone else (paid coach or another coach). This DOES NOT MEAN that the teams are exclusively birth year teams - that will depend on who is available, what coaches want, etc, etc - but when they form they normally start that way and then evolve as they will.
Over the years almost all formed teams have been continuous since inception - we are now in year 3rd year of graduating 18U teams.
Over the years we have also taken in several full teams looking for org support, so this also helps integrate teams into the fold as that happens.
We have a lot of standards for coach expectations and also how teams work with each other, but we also give coaches strong independence in how they run and form their individual teams. The org keeps the coaches in check for the most part and there is clear rules about player poaching/recruiting/offering players roster sports etc. We also reinforce that no one 'owns' any player - we are not forcing anyone to play for anyone. It has worked well for us.
Strong coaching in general wins out. With influx of teams etc minimally we have 2 teams in every age division - as many as 4 in one at the moment. Locally it is not unusual for our teams to be playing against each other in championship games or at least semi-finals and we are solid in 14U up in state and national travel. We would not have what you would consider the very top elite level showcase team; but certainly, we have an 18U and two 16U teams that compete at the next level down and a primarily 2nd year 14U team that will be there for 16U.
We have also been building up our rec program again; so that is starting to provide a solid pipeline of talent and coaches again.
Note: I should add: we have STRONG city support (including cost) and strong financials and a very good location for a program. It is easier to keep teams and coaches moving in the direction you want when you have things they can't get elsewhere. Threats to take your team to another park where we know you probably double your costs... well they are pretty empty (plus we call your bluff and say 'bye' - and have done in the past so everyone knows the org will follow through.
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