I would've said cap space but Balkman doesn't have a big contract and they could have chosen not to pick up the team option for next year anyway. Seems to be one of those "Let's trade spare parts, maybe something good will come out of it" deals.
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The point of this trade was just so New York could trim the roster down to 15 players, without having to waive someone with a guaranteed contract. Because Green and Jones both had non-guaranteed contracts they could waive them without penalty. With Balkman they had 16 guaranteed contracts, and thus they were one above the limit. Hope this clears it up.