Quote:
Originally Posted by Textcritic
Please help me understand your part in this: You have basically conceded that because of the RFA constraints which guarantee that Gaudreau will sign a long-term deal for under $8.0 m (which I think will actually be under $7.5 m), then why are we even arguing about what you define—incorrectly—as "fair market value"? Why does it even matter??
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I'm sorry, how is he guaranteed to sign under 8.0M? I've never said anything of the sort.
Quote:
Originally Posted by Textcritic
Fair market value is the number that best aligns with a variety of factors that includes production, potential, age, status, experience, offer-sheet eligibility, etc. Because of all of these mitigating circumstances that govern the value of Gaudreau's next contract this is essentially his worth precisely because it cannot possibly be otherwise. In short, Gaudreau is not worth +$8.0 m because no one will pay him that much. No one will pay him that much because the only team who can sign him is the Calgary Flames.
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The fair market value is the price at which it no longer becomes beneficial to sign a player. When people say he's not worth 7.5m-8m, that equates to them preferring to trade him or otherwise not have him be a Flame, because the team would be made worse off.
It is relevant because the term of the contract could extend into UFA years, or be short enough where Gaudreau could accept an offer sheet, both scenarios would be exposed to market forces.
If Treliving wants to stay below Giordano at 7-8 years, Johnny is better of holding out or signing a 1 year 3M deal and then taking the highest offer sheet available next season, which would likely be much higher than 6.5M per.
That's why you have to balance with fair market value.