Honestly, a GM could probably use a 5th, 6th, or 7th to jump the waiver order whenever they hear about a player they like that’s available. Provided amateur scouting is not awful, they come out ahead.
Put another way, trading a mystery box with a 5 percent shot at an Ethan Bear for actual Ethan Bear makes sense most of the time.
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The other aspect of this that I've been repeating a lot recently is that trading late round draft picks doesn't happen in a vacuum.
If you trade some 5th/6th/7th rounders, it isn't like you're just purely subtracting those from your system moving down the road. Instead, if you're not signing a 6th rounder in 2 years when they turn 20 it means you have an extra slot to sign an NCAA/CHL/Euro UFA.
And the thing with late round picks is that there is a tendency to make bad signings on sunk costs like Plasek/Palmu/Focht in recent years and the drafted prospect you're signing can tend to be worse than the Aman/Bains/Johansson prospect you'd be getting as a UFA.
Basically I'm currently coming around to the opinion that you can trade all of your 5th/6th/7th round picks every year and just sign UFA prospects with the contract slots you're freeing up, and you'll actually break even or maybe even come out ahead even if you get nothing in return for the picks.