Yep, it makes sense from both sides of the deal, which is why it's frustrating that no one signed this kind of deal for so long. The team gets the potential for an additional 1-2 years of competition by signing several of these deals (and the only downside is the loss of 3-ish percent to inflation each season). A couple of years of contention can be worth tens of millions of dollars to the team, which makes a few percentage points on 2-3 players irrelevant. On the other hand, the players get money valued higher (pre-inflation), get "rich quicker" through bigger early payments, and can grow that money over 3-4 seasons, which could be an enormous amount of money to the player if done correctly.