It's a good point. Is it player welfare?Definitely not. It will be an edict from the club to not select any player they don't think is worth the expenditure if resources.
However, I do sometimes wonder why the club is so worried about "resources". Given there is a salary cap that the poorer clubs can reach, we should essentially have unlimited resources.
If we can't afford to throw $60k or whatever it is for a six month contract plus whatever few additional man-hours it takes to coach them, then that's pretty sad.
Don't want to give a 6 month contract to someone they don't rate and don't want to waste their time?