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If it's the mythical 5 year that made this a non starter before $ was event talked about, just perpetuating the sterotype of Toronto being a (further) unattractive place to play for any top FA's, no matter how long or short of a contract they want.
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How many contracts in MLB history look good after 5 years?
Just because they team is making a strategic decision not to go longer then five doesn't mean they won't open the purse strings.
The Red Sox also have a no contract longer then 5 years rule in place now, and while it may have cost then Ellsbury, in the long run it will probably be the right decision.
The real issue is that while it may be the smart/proper strategy, it may not be the winning strategy...