Pretty sure I disagree. Teams know that the 7-8 year deal is a bad idea. That the value won't be there at the end. But teams set their own payroll standards. I'd say the Mets gave Wright his deal, despite being under contract, because of Santana's deal. Yanks gave Jeter his deal because of the deals given to Texiera, A-Rod, CC(and countless others before them). Believe it or not, the players/agents still hold the hammer. Wright went to the Mets and said "Let's talk extension." The Mets caved because he's their most marketable player and they didn't want to risk losing him. And his agent started with Santana's contract as his base. That's why they extended him til he's 37 and paid too much.
And, to come full circle, regardless of what you believe, the Yanks couldn't say 1/8m or 3/24m to Jeter because the YANKEES market says that's Kyle Farnsworth money not starting position player money.