Greetings, Let's say you've got a sure-fire future Hall of Famer. Total stud...
For almost all players it is more economical/beneficial to go through Arbitration twice, then sign him long term if you want.
In HBD, is it ever beneficial to sign such a player to a long term deal early, because his asking price for a 5 yr deal is going to be cheaper than 1-2 arbitration years and the remaining 3-4 years on the front end of what would then be a long term deal?
Or, is the computations in HBD such that you should always go through arbitration twice then sign him to whatever he requires for the longer term at that later date?
To put some rather random math to it, let's say Arb1 is $2mm, Arb2 is $4mm, and the first 3 years of a long term deal are each at $8mm...for a total 5-yr cost of $30mm. For it to be worth it, the 5-yr deal going in to Arb1 would need to total less than $30mm.
Or, maybe a better way to think of it is a 7-year horizon, counting the first 2 years of the player's 2nd long-term contract. So, Arb1 + Arb2 + 5-yr Deal vs. 5-yr Deal1 + first 2 years of 5-yr Deal2.
Essentially, is it cheaper to avoid the first 2 years of arbitration and sign a deal while he's a rising star instead of an established star.