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If you trade a player in the last year of his contract and consume his contract, essentially you're eating the rest of the contract (this option is only available during the last year of a players contract).
Essentially it's there so you can add picks from a team that otherwise couldn't afford to add the contract.
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"I don't want to play golf. When I hit a ball, I want someone else to go chase it." - Rogers Hornsby
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