We have to reduce squad size before we can bring in new players.
But is not the numbers preventing us bringing new players in, it’s the overall financial liability of a big squad in terms of wages.
cancelling contracts has the same financial consequence as keeping the players as they have to be paid out in full anyway. So there is no benefit cancelling a contract rather than keeping a player and simply not playing him. And At least that way we still have a back up if required come the next window or can seek to loan and get a contribution to wages. .
in fact, The threat of keeping a player on that basis should actually work in our favour to get players to accept moves where we don’t have to pay wages unnecessarily.