It boils down to two basic problems: Pay and talent pool.
First, the pay and intellectual rights situation is very bad so people who write for living get more from writing their own work and self-publishing it. Numbers work like this. I write 5000 words and get paid 4 cents a word for 200 USD and I lose rights to it. I get same amount for 1 USD short story with 70% mark up for selling 285 downloads for kindle. This is very low number of DLs for established fanfic writer doing erotica or any personal material. Furthermore, owning stuff actually means that if you make a hit, you can get more DLs for duration of your career from other stuff you have written. BattleCorps does not do that. This means that anyone with any proven talent stays away from BattleCorps and self-publishes.
Second, BattleTech talent pool is incredibly shallow so people who read for fun stay away from it. BattleTech simply isn't popular which means that number of potential writers is low. The amount of talent available is best seen from browsing what interested fans have written (official forum's fanfic board). Level is low and has gotten ever smaller during last few years. I personally believe that pool is effectively empty and whoever manages to put anything resembling a decent story has already been taken in. The pool is so shallow that there is perhaps one author who writes readable fiction while others are at best better than average fanfic crankers. This also means that BattleCorps stories are generally poor derivations that do not attract outside readers.
Solution to all this is money since you get what you pay for. Without money you cannot get even "bread writers" and without money all you get is miserable hacks. However, the miserable quality means that you do not attract readers who might read it even for a guilty pleasure. Ultimately the business model needs a revamp if they wish to make the BattleCorps work.
