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I've heard speculation about this for some time. Sundin wants to stay out East, with TOR (obviously), MTL, OTT, and maybe DET being the most interested parties. As for what this would do to Sundin's rep, I'm sure it would hurt it quite a bit, especially to those Leaf fans who deluded themselves into thinking Sundin was taking a hometown discount when he signed for 5.5M last year or the ones who believed he was going to "take one for the team" by waiving his NTC last year.
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