In previous games he was almost always available for free after about 3/4 seasons (whenever his contract ran out), he'd spend most of that time on the transfer list, but nobody else could afford his wages. Maybe FM have rectified this but getting City to give him the sack.
On a related note, does anyone else think it would add to the game if players like this could see a late boost to their CA. So for example Balotelli has been trouble at City ended up struggling in Serie B and you managed to get hold of him at about 26/27, put your arm round him and get him to finally decide to turn his life around, he could still be a class player. But in FM once he reaches 25/26 he can't get any better