noknobs
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Bad contracts only matter when they prevent you from being able to make other moves, or if the owner can't afford them.
As for the first one, if the team is well over the cap anyway, having a bad contract on top of it all doesn't constrain them any further. They can still trade any of their other players just as well as they could without Arenas, they still can't sign free agents (except using the MLE) with or without Arenas and they can still sign draft picks with or without Arenas. In what way are the Blazers hurt, from a team-building perspective, by having Arenas' salary on their cap if they are well over the cap either way?
As to whether Paul Allen can afford it, I guess neither of us knows. The last time Portland fielded a contender, he was willing to go hugely over the cap. This time, he may be more wary, but I still think he'd be willing to pay one bad (hideous) contract. All the other contracts are likely to be good value.
I remember the last time we decided to bring in as much talent as possible, salary cap be damned, and just throw them all out on the court without giving a shit about chemistry. Guess I'm in the minority there.



