That's what I tend to do. Sack the better player who costs Tokens (As you can get better off the market for cheaper) and sign the free player, then immediately I put him up for sale for the extra cash.
Its getting harder to sell them however as I think cash levels for some are a problem in the higher levels, so there isn't loads of teams who can splash out another 70M+ for a player, but I keep relisting until he is sold.


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