Under bankruptcy law, those contracts could technically be avoided and therefore those players could become free agents. However, avoiding the contract does not mean the contract is no longer in existence. The contract still exists. Avoiding it means you breach it. If the Cubs were to dump, say, Soriano, Soriano would have a breach of contract claim against the Cubs' bankruptcy estate, meaning he could get all of the money owed to him along with any other penalties that would come along with breaching his contract. The bankruptcy estate would have to pay that sucker off. Plus, as has already been mentioned, it would cause numerous headaches with the Players' Union, agents, etc. This post reeks of someone studying for the bar exam. You forgot that Soriano and Bradley must mitigate the damages as well. In reality, it seems like the Cubs could do this, but the Players Union would most likely go on strike against the Cubs, and every player would have to sit out. Selectively breaching some employment and not others seems like something a union wouldn't go for.