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Similar to razgriz, whenever my arena rosters reset every few hours I'll get a team in the 2400's or lower in the first slot (I'm in the 3000's right now), while the rest are all up at my rank. It doesn't happen every time the arena roster resets, but it's still strange.
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I don't actually do Arena that much, so I get dropped pretty low in rankings. Sometimes really low.
I can tell you that if you go low enough, there are "made up" teams, often with "players" that have the names of the band members, or Iron Maiden related things. They'll also have teams made up of 5 star characters at 3 star level, etc. They're intended to be easy for players who have dropped to those levels and newer players with bad teams.
I actually think it's kind of a neat workaround for the fact that there just aren't really players running around with 3 star/4 tar teams anymore that are still active (they either quit or they got 5 stars maxed out). You see some of them at higher levels too, occasionally, but they're less obvious then.