Boy, I've read lots of opinions on here that if this situation isn't against the rules you can/should do it and others who have paid all year just shut up and watch.
I totally disagree. Just because you can do something does not mean you should do it.
My son played in a successful organization that did NOT do that. We made many finals and never won the "big one". We won statewide and lost nationally, but competed. We lost to ringer teams and never felt like it was a loss. Our coach felt he'd rather lose and expose the players he was responsible for improving to tough situations/college scouts then kids who did not contribute to get to that point. If not for that, my son likely would not have just had a terrific Super Regional as he would have sat on bench not improving or being seen by coaches so some kid who didn't pay could be seen and the coach could get some self gratification. Would you work for someone if you did a great job and they consistently passed you for promotions to hire from the outside? Sometimes all you need is a chance to rise to the occasion. That chance should go to the kid sacrificed all year.
Our team stayed mostly intact for 5 solid years and at least 80% went off to successful D1 programs even though we never won in Jupiter or Georgia. We competed always and that was enough for these kids to get better and meet their goals.
We didn't win the WWBA but we parents were happy, our kids improved and went on to meet their goals, oh and they played for a man who taught em a pretty good life lesson about how you treat people as well.
Golfman, I think your friend needs to stand up for his son and find another team. Winning isn't everything and you don't have to win a big event to play in college or improve. Find a team who believes in loyalty. Club ball isn't college or pro ball, it's supposed to develop players to get there. But by the way, college ball can not bring in a player from another team to play through the NCAA tournament either! A strong, confident coach/program will not need to have ringers to fill his roster if there is any substance to what he teaches all year.
More people need to stand up for better values in youth sports and until college, it's YOUTH sports.