Now maybe this is blaspheme, but fiscal freedom doesn't win ballgames. There are a limited number of pitchers capable of pitching 200+ IP a year and allowing something around a 4.50 ERA. If you want to win in MLB, you have to have a few of those guys -- and there aren't enough for every team to have enough.
Who are you spending Arroyo's money on? Now remember that, in the spirit of this thread, you already have $11M to spend from the other contracts which magically went away. The Reds aren't pinching pennies. They have significant production coming from very little cost over the next 2-3 years both in the pitching staff (Cueto, Volquez, Bailey, Burton, Bray) and the lineup (Votto, Bruce, EE, Phillips to some extent).
How do you intend not just to shed salary, but to get more production from that salary -- because fiscal freedom is just a means to an ends. If the idea is to replace Arroyo's production with Bailey, Fogg, Shearn, or who knows who else, I don't see the point.
Again, I'm not against trading Arroyo away. I just need a little more logic than shedding salary for the sake of it or adding Brandon Inge.