This happens in the NHL all the time. It's a ground up rebuild where Chabot, Tkachuk etc will be the stars of the team for the next decade. He's not dumb, he knows great teams can be built like this - and Melnyk is not a good owner, but if starts seeing commitments to the young players (Colin White), then it's a step in the right direction.
The only thing about all this is, if I was Chabot's agent I wouldn't even discuss anything long term for less than 9, or a bridge that leads me right to UFA for 6. So, 5 years, 30 million (which is BAD for Ottawa IMO) or 8 years, 72 (maybe 70) - which is good for Ottawa.