Yes it will,however the player will still be on your team, it just means you cant sign any fa's during the season, im unsure about offseason as I havent reached that point yet, and if your team does sign a fa , I usually sign him to another team,release him,then have claim him off waivers and then he's on your team like normal. Its only way i figured to keep realistic rosters for the Dodgers adding all that payroll. Im around 38 mil over budget but Im still playing a game with Gonzalez at 1st base, so it works for me.