Re: Steelers' Alan Faneca: I'll Play Devil's Advocate
You don't buy a stock for what it has done in the past. You buy a stock for what it has the potential to do in the future. You use the past as an information source for determing potential, but past performance of a stock (or a Pro Bowl football player) does not indicate future performance.
What are you willing to give for Faneca? 3 years/$24 million ? Why not a 5 year contract? Or a 7 year contract? If you love and value him so much, ink him to a 7 year deal and let him die a Steeler. How many shares of General Motors are you willing to buy right now? It's at 31.14 right now. It could go to $40 in the next 5 years. It could also go to $20. Faneca may have 3 good years left in him. He may have 2. Why pay for 3 years of good service if you're only getting 2? Why buy GM at $31.14 now if it might go up to $35 next year and fall to $28 the year after that?
And guess what? If you buy GM at $31.14 now, you can't buy Disney later (it's at $36.17 right now). If you overpay Faneca, how much chance do you have to keep your first round QB, Ben Roethlisberger, or first round S, Troy Polamalu, who both need to be paid well to stick around?
Where there's a salary cap or finite amounts of money (i.e. not the Yankees), you will always have to stack the chips on two sides of a scale and see which one is worth more. Most people would love to see Faneca, Ward, and Porter retire as Steelers. Cap casualties happen....
And no one hurts more than the fans.
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