Sure.
But!
Under the premise that this team is going to be competitive two, maybe three years from now.
Do you think we're going to be swimming in cap space or do you think, in the most likely of scenarios, we'll have spent to the cap? I'll take the latter.
If we aren't swimming in capspace, where did the money go to? As mentioned a few posts above, we've got some players on the roster that need to get paid. We'll have probably signed a B or C level UFA to replace Savard or to fill in as a forward. The money's getting tied up in younger and (probably) more important players than Newhook.
I think there's almost no chance we're going to be trying to compete all the while having tons of capspace, not how this team's been currently constructed.
So what do you do with Newhook? If he underperforms, do you really want to sign him to a 5-6 year contract? And if he performs to the level he is now, without taking in the possibility of improvement, do you want to give him his retirement contract? When >80% of those contracts end up sucking?