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I think the two big things are that at 17 there is no knowing exactly how well he'll adapt to S14 where a longer contract might turn out to be a bad investment and that if he was given a 2 or 3 year contract he would become too 'comfortable' and wouldn't feel the need to constantly prove himself like he would if he was playing for his next contract.
One year is good. If he turns out bad no loss but if he turns out good you hook him up with a 2 to 3 year contract before he becomes too much of a target for other teams. We need plenty of options post Sharpe and in general as lock depth isn't huge in Australia. The Waratahs have been struggling to find someone and between all of the teams and the new Melbourne team it would be good to have a bit of a mortgage on the young talents.