We discussed the hyper inflation within the GameWorld before in an earlier post. To summarize it, wages will explode even further, leading to even more inflation. Your money becomes worthless. The few remaining players on normal wages will be highly sought after because now everyone will try to slash their wages.
This means that the end-of-contract wage auctions are even more critical these days. Players with normal wages will be attracting lots of interest and the desperate managers after them are willing to pay a high wage to get them because of their normal wages. You have to admire the absurdity of that. They are willing to pay a wage five times higher than the current one, because it would still be lower than the wages of some of the players in their team.
Either way, since you can only protect five players with senior contract locks, this means there's roughly six to ten others running around you cannot protect. So basically anyone outside your 5 senior locks and your youth locks goes to a wage auction 24 hours before the end of their contract. This means the highest bidder wins the player, and as compensation you receive their Acquisition Fee (AF) - which is somewhat below the market rate you could get for the player by selling him.
Wage auctions are a thing you want to prevent. You don't want your player to go into a wage auction, because this will most likely drive his price up. To prevent this from happening, you forge an alliance to circumvent this whole problem. There are other managers out there with a similar problem to your own. Their squads might get ravaged by the wage auctions as well. Use that knowledge.
Offer these managers a sort of partnership. Swap players. For example, you could swap your centre-back with an expiring contract for theirs, who is in a similar situation, possibly with some money to make up for the difference in Market Value. This way, both of you keep a good defender on decent wages, without the hassle of a wage auction.