It's better that they don't extend him. Of the four outfielders on the market, I think Cespedes has the biggest bust potential. He was amazing this year, but he's also 30 and he wasn't any where near the player he was this year in 2013 or 14.
His primary skill is power and he's now 30 and doesn't have a good track record of avoiding outs. That's probably not going to improve much and the last thing Detroit needs is being tied into a wrong side of 30 outfielder who can't avoid outs and won't wield the power he once did.
They should sign Heyward or Upton. Both those guys fit nicely for them.
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