If a player is on your team now, and is Level 1, they won't get autocut at Day 41, they'll stay on your team. I did this last season before we had roster caps and signed all of the new players over after we were eliminated from the playoffs. The one thing I nearly f'ed up big time was I had signed all of them for "one year" so on Day 33 of this season they all almost got kicked off my team but I was randomly looking over my roster two days before. It would have been a nightmare if all my team was cut cause I wouldn't have been able to resign them.
