Could you imagine? That would really sour me towards the league's way of doing things (even if it works in our favor). It might also make me re-think Kries' want for the allocation order if they knew they had this exemption waiting for them.
But, on the flip side of this hypothetical coin, wouldn't you do everything in your power to make the situation work with a player who as zero cap hit? Even at the expense of other players you could cut and replace. And 2 managers both relegated him, not to PV's level, but still. That's what makes me think it's not the case.