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That is probably the right way to do it, I am not sure if this has come up yet. I would like Rob to chime in also to make sure we are all on the same page. Ironically enough since Fantrax has Bailey as a LW, he is #84 which would be the same 900K contract. It would just be up to Cho to pick the amount of years. He put 2012 on the pick, but not sure if in this case he would mean a 1 year extension, or if in light of this would want to extend him for longer.
This is a quote from Rob on the Q&A section"Yes, even if they signed it after our roster effective date. Whatever contract they have at the moment they are picked is their contract in DNHL. If they're still on the FA market they must be extended immediately".