I just did a test dynasty with the Royals, with budgets turned off.
The roster set I used had Urbina on waivers. When I went to FA's and tried to sign him, it allowed me to, straight up.
There was no "negotiation" screen, and I was instead told that I had signed him when I selected him.
It says, "Are you sure you want to Add Kaz Sasaki?" when I select Kaz (who is also on Free Agents).
If I click yes, he is added, providing I have room.
When I go the Free Agents with budgets enabled, I select a player and am greeted by a Contract negotiation screen.
With bugets disabled, signing Free Agents seems to be more of a roster editing move than an actual contract negotiation, as that screen is removed completely.
I just tried this again with I-Rod. Budgets off.
He signed a 1 year deal @ 2,971 a year.
On the Free Agent list he was asking 4 years @ 2,971.
So he is on my team now, with a one year deal. If I go to the payroll screen, I can then open the contract negotiation screen and offer him an extension.
I am going to test sim a month ahead to see if the CPU signs anyone, or if only my team does, seeing that it seems to be more of an "editing" move than a negotiation move to sign Free Agents.
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Test sim done.
Kaz and Urbina remain free agents (they are asking a lot of money).
2 months in, here are the players that have been signed:
Dbacks: (SS) Mark Malone
ChiSox: (3B) Drew Henson
Reds: (LF) Rickey Henderson
Rockies
SS) Cesar Davis
Tigers: (SS) Josue Mouton
Jays: (C) Jeff Sardinas
Aagin, I used a custom roster set, and the top 3 un-signed Free Agents are: Sasaki (asking 2,806 for 4), Urbina (asking 2,674 for 2), and A. Boone (asking 2,542 for 2).