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I don't remember the exact details but I believe he was traded for Hall and a prospect with limited cash changing hands to cover their salary differences. Even though Kotchman's salary will be about $3.5m, a big chunk of that is being paid by Milwaukee.
Regardless of the exact details, my point is that the Ms investment in Kotchman is actually minimal and if he busts they can drop him easily. That said, it sounds like it is his job to lose.