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Tribe was in on Pedro?

According to John Heyman, the Tribe made a $7 mm offer to Pedro before they signed Pavano. So if the Pavano signing is worth at least $1.5 mm and potentially up to $5.3 mm, does that mean they essentially have $1.7 - 5.5 mm available? Regardless if it's available, even knowing Pedro's injury history/risk, I'd rather take the $7 mm gamble on Pedro than the $1.5 mm gamble on Pavano.

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