The main problem is, that flood doesn't support a long term game play experience. So basically it gets boring really fast, and that makes it tough to keep regular admins on the server. So an admin might start out on the server every day, but eventually it gets too boring and repetitive, so the admin moves on. The only way I could see keeping regular admins on the server, would to add a new admin every few weeks or so, and that would not be a good solution.
The game-play faults also goes along way to explain the high minge amounts, most people start off just fine, and play the game how it should be played, but after a while they run into a wall where there are really no new experiences to be had, but they spent so much time into it they really don't want to leave so they find other ways to entertain themselves and this usually leads to breaking rules.
The other issue that takes place, is the high entry requirements of the game, when you start out, you only have a crappy pistol. But almost everyone else has rocket launchers and the like. And since you have a limited amounts of funds you cant build a very strong boat leading to it being killed almost immediately.
The third issue, is how the reward system works. Only the people who win the round gain money. There is no way for a person who is broke to gain any cash, other than to jump onto other people's boats leading to the problem of piracy. People often complain about money rounds, I know I do, but there is a good reason why it has popped up. That's because it's the players way of attempting to correct a game fault, it just happens that this method takes a long time and is very boring.
I could continue all day long on other faults of the game mode, but I think I outlined a few of the less talked about ones.
Flood is a game that is at a in-house beta, or alpha level of finish. It's not so much as its buggy, more like its just the base start of a game and no content or balancing has been added to it.
It has a lot of potential, but in it's current form it is very incomplete. So it really shouldn't be run full time on a server, not at least until some more effort has been put into its development.