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I've been thrilled with Branyan since day one.
My position remains ...
explore trade possibilities -- and don't be afraid to let Branyan go, if he's going to get you an Elvis / Salty return.
explore extending him -- but don't go overboard on contract length, (but by all means give him some really good cash).
Simply put -- you have to know what your options are actually, before you commit to either decision. Deciding to sign him today, (and ignoring trade offers), only to find out that he's demanding 5 years minimum is going to be just as stupid as trading him tomorrow for Joel Pineiro. (Tampa managed to get Kazmir for the OTHER Zambrano -- and there are GMs out there capable of severely overpaying for a guy posting a 1000 OPS, even if he has been bench fodder for a decade). But, you can't find out how rich a haul you might get, unless you check it out first.
The argument over which would serve the organization better -- 3 years of Branyan or 10 years of the next Utley -- well, that's a reasonable debate.