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Former Flames GM, Craig Button, described a similar system in use by the GMs (touched on by Daly). The only real difference is that the bid by various teams is kept secret (for obvious reasons). The comparables and statistics are all there. It's just that the timing of arbitration as well as who opts for it versus holding out is heavily skewed in the NHLPA's favour that it causes massive inflationary pressure on restricted free agents, even though the NHL has the most restrictive free agency in terms of player movement. There's nothing legally wrong with it but clearly the owners have had enough.
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