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With free agency, you can't get too attached to having a player be on your team. Smoot's received a very fair offer. You can get to a point where keeping a player means you are prostrating yourself, and signing him out of the fear of what will happen if you don't.
If Smoot demands a salary that will hurt the team, then in my book you shake his hand and wish him well. We have got other talented players already on our team. There is no need to turn around and draft another cornerback in the first round or even necessarily in any round if Smoot leaves, as I see it.
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