First of all, neither you or I have accurate financial information, unless you're Dave St Peter.
Second, I'd imagine "profit/loss responsibility" belongs to St Peter, not Falvey. We're discussing baseball transactions here, not net gain. I understand Falvey has a budget to work within, but I doubt he "profitability" as a metric on his annual performance report. He gets graded on Wins and Losses.
I don't give a rodents behind if Jim Pohlad earns a yearly profit or not. It's of no interest to me. But here's the thing....the value of this franchise has gone from ~$45m to ~$1.4b since Carl bought it. You claim these are smart people, so I have to believe they're making GOOD money or these smart people wouldn't keep bidding up the value of these franchises.
So I'm left to believe Jim Pohlad, operating in a publicly financed facility, could easily chose to spend more on player acquisition, development, and salary if he wanted.
Cries of small market this, or mid market that, or 9 figure industries, arent very relevant to a discussion of whether the Minnesota Twins could have "afforded" Jose Berrios. Of course they could have. Easily. Ridiculously easily. It's literally a "mid market" contract.
There are arguments to be made about whether or not trading Berrios, or Buxton for that matter, are wise BASEBALL moves. Financial arguments aren't in the least relevant, and only serve as smokescreen and diversion.