Turning off financials and roster management

[Walsh06]

Im playing a very weird and different league set up at the moment and was thinking about turning off financials as they really dont matter overall and Im only playing as commissioner so it will be a level playing field for the AI. My question thought is without financials I understand that players will stay on a team until they are traded or released. But is the AI good at releasing bad players and signing better ones who don't have a team or do they tend to just hold on to a player until they are eventually forced to release them.
If I were to do this I would rather the teams try to pick the best players from the overall pool.