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Whats worse, losing picks or having to carry dead cap?
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Overall, I would agree that dead cap is worse, since it's entirely not usable.
For our current situation, I think dead cap is worse (Poolman can qualify as that if his play is still crappy). Having lost earlier picks, at least we retooled with Kuzmenko, Aman, Joshua, etc. and restocked and all that it cost was cap space.
In a year or two, if we become full-fledged contenders I think it's a different story, we'll regret not keeping the draft picks to have strong players on ELCs for quality depth (e.g. Avs have Byram, Newhook to potentially play important minutes). -