I don't know any info about the "5th team in", which is what some of you are asking. But AFTER 5 teams have processed CVs it works just like it does after you've spent 20 HV. On the recruits recruiting page under CV, there's a message that says "this recruit has accepted 5 CVs already".
I'm curious how that last spot works as well. I would assume once it's processed, someone would get their budget money back, and a message. I doubt it manages things BEFORE processing. Because I could offer a CV and be the 5th, and it would block other coaches, then I could withdraw my CV before the cycle processes and mentally screw everyone up Haha.
CS if you're reading, a lil info would be helpful!