"They have enough cap space to horribly overpay a player as well as lose four 1st round picks".
That doesn't seem like a good argument imo...
Dubas overpaid Marner (who had better elc stats than EP) and it's universally considered a bad contract and may cost him his job.
Now just imagine... just imagine... if it was (lol) 13 mil AS WELL AS Dubas lost 4 first round picks. He'd be fired with such a bad reference he would never work again. Not only in the nhl, but literally anywhere.
I mean, come on everyone. Let's be realistic about this.
I'm not talking about Petterson but let's talk about this: RFA offer sheet is where you find your talent and draft pick is like roulette where draft picks don't pan out. Top UFA talent are rarely acquired because many teams has secured their contract by buying their UFA years. Therefore UFA where it's often the journeymen dwells and most of RFA is locked up into their 30's where most often it declines around 32-35 years old.
UFA signings is a very risky business and it can get you into a trouble with a bad contract, i.e. Loui Eriksson.
RFA offer sheet is often the worth the draft pick being lost which it might set you back a few years with lack of prospects whereas if a team accepts the offer sheet and is NHL-ready players at a premium price. If you are able to poach a talent away from them, it will shoot your draft position higher by a few spots where a loss of draft pick might not hurt so much, if you finish 10-15th spot but still out of playoffs spot and lower your chance of other team winning the lottery from your own pick. Then after securing his service, you have the power to decide what to do with him with flexible cap space.
If you offer sheet a top talented RFA for one year deal at a premium price, it is often that team who offered sheet would QO him for few more years on one-year deals (if he accept every time QO is tendered) rather than offer sheet at 4-5 years term where he might be overpaid by a few millions and hurts your cap space for one season rather than 4-5 seasons.
It doesn't hurt your bottom line if he had a super year with his new team for higher price and longer term when you begin to negotiate with him on January 1st. RFA will often think of his comparison of how the negotiation going in the summer with his own team and sleep on it and hope that a team would tendered an offer sheet if they lowballed you with their offer, you will take the higher paid offer sheet at one-year knowing that they would have to QO at the same price or let you walk and lose nothing as UFA and you can pick your own team and probably at a lower price but you would be comfortable with higher price that you might never get this chance again if you don't perform. If you paid premium for one-year deal to any RFA, then QO will be higher at his next contract and more likely that he would accept a QO if he had a bad season with his new team if they decide to give him another chance. If he had a good year, then you negotiate that said player to a team friendly AAV contract on January 1st in hoping that he would give you a good will if he having a good start at start of the season.
It is a win-win situation for one-deal offer sheet is that you are not committed to him long term at the beginning for higher premium price when compared to his peers at similar talents around the league. A bad year, you let him go, not committed unless you still have lots of room in cap space to give him another chance to rebound and if he falters again, you cut him loose as a rebuilding team.. The best players will often make others better than they truly are as it's often the case with superstars throughout the history if you are rebuilding team. Therefore you might not make the playoffs but your final draft position will be at mid-round picks rather than top 10. The risk of NHL-ready is more often the reward than the risk from their young career. Top talented player knows that he will get paid even if he underperforms after showing the best ELC player ever seen despite being injured prone.