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Whats worse, losing picks or having to carry dead cap?
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Dead cap. Can't get rid of it once you have it. With picks, there's always the chance that a pick can be recouped.
For instance, yeah the Canucks traded a 2024 2nd in the Dickinson/Stillman deal but if the Horvat contract talks go south and he decides he doesn't want to return and the Canucks make a deadline deal, there's always a chance that a Horvat deal could recoup that second (along with getting other picks). Not saying that'll happen but that's one scenario where they can get a pick back.
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