Jake Peavy is the perfect example. I took over the Padres, who have 67m in cap, had less last year. Peavy is on 14m per for 3 more years! He's scheduled to make 42m. For me to drop him at 42 would be impossible. So I would have had to sit 14m per on the bench because Peavy can't even stay healthy to be a bad pitcher...which he is a bad pitcher. His value isn't even .5m per year. I feel bad for Cleveland that they got stuck with him. And I'm still paying 7m a year for him.
This is a reason we have to allow releases of contracts. That some teams are doing it for messes they created themselves, oh well, it doesn't destroy the game.