But if we're saying he drafted Mike Smith, then his player was available in the draft. And how does he get Roger Williams? Through the draft or trade, he still would have been available in the draft since he wasn't a GM rule acquisition. If anything, transferring the title like this (I think) would actually decrease his use of the GM rule, meaning fewer free acquisitions.
An issue could arise with two players being on the same team, but I think a simple solution might be to say that the title can only be transferred to a younger player.
Consider this: the only way a player joins a team through the GM rule is when the previous GM player retires. If the GM title is passed to an older player, then that would theoretically reduce the amount of time between GM player recreates, giving an advantage. However, transferring the title to a younger player will extend the amount of time, which would seem like a slight disadvantage (although giving the GM a little more flexibility).