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"It was a design decision.
It actually makes less sense to allow you to use your cash for extensions. Or at least it does in an owner controls budget league... but as I've said elsewhere that title, "Owner controls budget" isn't quite what you might expect."
That's inconsistent with allowing cash reserves to be used for Free Agents, though. So this kind of scenario can develop:
Due to "budget" issues, you can't resign a guy to a 1 Yr. $10 Million contract. But after he goes to FA you can then sign him to a 1 Yr. $10 Million contract, since you have the cash reserves to do so. It's insane.
The whole point of cash reserves in the first place is that it's *cash* in *reserve* - cash for use when necessary. Not being able to resign a star player for half of what you can then sign him for as a FA is extremely wrong, and the Owner if rational would hardly approve of it, yet he "approves" of it in the game.
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