In a perfect world you would never have to worry about releasing players, because like you said, you would have the perfect plan.  I'm definitely not advocating the releasing of players that still have value or still could produce on a ML level.  What I'm talking about is what you briefly touched on - the aging vet who is starting to decline at a rate that will shortly have him on the FA list anyway.  

Hypothetically if I have the chance to sign a 33 year old to a 5 year deal, knowing that he will only give me 4 and 1/2 good years better than any of my AAA replacements, I'll sign him in a heartbeat.  If after those 4 1/2 years I no longer need him or he can't produce at a replacement level (ie his ratings fell off the face of the earth), then I have no problem giving him the axe.  He'd be a 38 year old with no future value to my team in any shape or form.  That's pretty much the only instances I feel comfortable releasing a guy with money left on his contract.  

No one should ever be releasing young guys under contract and especially not early in the season.  Like I said, I will only release a guy if he is at the very end of his contract, he's played at least half a season of that last year and I see no future value in him (in either the form of trade potential, Type A/B compensation, etc.).

I don't care if a guy can make my AAA team better...

I think you're missing the point.    It's not about making your AAA team better.    It's about him being capable of being the 25th-30th man on your BL roster.   The best example I have is Hardball Dynasty – Fantasy Baseball Sim Games - Player Profile: Denny Davenport.   I knew by S5 of the deal I gave him that he'd be of little to no use to me.  But that's how I had to structure the deal.  So I sent him to AAA because I figured he could play LF/1B or PH if I had 3-4 position player injuries.  IIRC, I called him up after roster expansion.    What good would it have done me to pay him some portion of 5.7m so someone else could let him play LF/1B or PH after injuries for 327k?

I understand what you are saying - keeping him around in case injuries happen that would require you to utilize him.  If he was still right on the cusp of being one of my top 25 guys then I agree, you probably keep him.  But if he falls off to the point that anyone in my AAA would be a better replacement, then he's not going to be around long.

Even if he's not useful to you, why would you want to pay him if he's useful to one of your competitors?    I get the cash in trade part of that equation because you're getting something in return.  Maybe you have to pay a portion of an albatross bill.   But, when you release a player, you're picking up the tab except for the pro-rated portion of 327k.    Maybe your divisional rival has no depth.    Your slug might be attractive to him for 147k for the 2nd half of the season.

To put it another way, part of my job is to make my team better and part of my job is to not let my competition get better at my expense.   I also think, as a good owner, looking at things in a vacuum("I don't need him nor do I care who gets him), is a problem.   While I may not care who wins in the NL of Coop, I shouldn't be doing things that don't benefit me but helps a NL team get better.

oh I agree on that, and that plays in every move I make.  1: how does this affect my team 2: how does it affect my rivals and 3: how does it affect the league.  I still think you have to go through that process before you make any moves.  If I'm releasing a guy, he's usually a turd and I have to feel like he won't be of great value to anyone.

There's still no upside to releasing a player unless you desperately need that pro-rated 327k.    And there are better ways to get that amount.

I agree with that, there really is no upside to releasing a guy. To me, in certain specific situations there is no difference between releasing a guy or trying to push him to the minors and hide him away.

I'm thinking about awarding the cake to this thread.

Posted by MikeT23 on 2/13/2012 3:54:00 PM (view original):
There's still no upside to releasing a player unless you desperately need that pro-rated 327k.    And there are better ways to get that amount.

You are forgetting one legitimate reason to release a guy still under contract.  You waive him, he clears waivers however he wont take the assignment to AAA, thus releasing him is the only way to open up a spot on your 25 man

I'm not forgetting that.   You designate him.   He accepts the assignment.  You're welcome.