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Originally posted by Brain Dead Squirrel Chasers
In my example above Team Y is getting screwed. Lets say for example team Y has alot of cap space left but no roster talent or draft picks available to trade. All he can do is bid for RFAs and UFAs to improve his team. Team X has picks to trade so he makes that deal with the RFA's team and sends some draft picks for the RFA that was just matched. Team Y is cannot counter offer because all he has is cap space, but he would have certainly outbid any other team for that player. Now he's lost the player he really wanted and has all this cap space left to spend. What will happen is he'll just overspend for another player.
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This is a valid point. Not sure how often it's happened, however... but it does impact the league. Team Y could be willing to go much higher to retain the services of a highly-sought-after player.