I think there’s a difference between competing with other teams for players in the marketplace and overpaying by going hog wild spending more than a player is worth, based on the value of their contribution. More discussion below, but consider this: every player should be a playmaker, in the plays they make at their position. They can’t all be paid top dollar. You can’t outbid every team for every free agent. You have to be selective. Realistically there are five potential playmakers on the field for the offense on every play, once you have your QB. You need that group to be solid, with ideally two or three standouts. Defense is similar, headcount may be different but idea is the same. You need to compete with other teams to sign enough good players to fill your dance card. To me, overpaying is spending much more on any one player than their productivity relative to their peers justifies. An example would be a player that once was truly stellar but has started to decline, past few years has not been getting the same burst and separation, has more injuries taking longer to heal, so production is down, and paying them top of today’s market when it’s unlikely they’ll deliver. In a word, Juju. Or Sanu. Is it really good to outbid other teams for them?
I don’t think it’s necessary to be dictating things with contracts to players in order to maintain financial discipline. Historically back in the dynasty days Bill had a value set for each position to allocate cap. That’s simply what’s called “budgeting” and sticking to it meant he wasn’t overpaying. Where it broke down was when he and Krafty Bob got too tight at the same time that player evaluation went off the rails. It wasn’t about dictating terms to players; it was about saying “this is how much money we have to spend” and holding the line even if it wasn’t a good player that they liked a lot.