After 3 years of service a player must be put on the 40 man roster or he is eligible to be drafted in the Rule 5 draft....He DOES NOT need to have a ML contract. In the next patch only the players on the 25 man roster should be on the 40 man roster and almost no players who have yet to play in the majors should have ML contracts. It ought to be up to the human player how he or she wants to manage their roster.
This patch has screwed up roster management because it arbitrarily put minor league players on the 40 man roster and awarded them major league contracts. Highly unrealistic. And there is no way to take them off.
http://espn.go.com/mlb/s/transanctionsprimer.html
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