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You are working with the existing model which is composed of one player and no competition. A model with an entire pool of such available talent could not help but drive down the costs.
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Not entirely. The model is closest to 1 year free-agent contracts that are given to a particular catagory of players in the offseason, though there's some complication in the fact that many 1 year contracts are flyers on high-risk/high-reward which may suppress the cost. I think it's fair to say, with players who are not subject to questions of injury or unexpectedly poor performance- the shorter the contract the greater the yearly payoff.