I don't see how this would be any kind of a successful smokescreen, and do you guys think Vivek/PDA are really using CD as a smokescreen? I guess it's possible.
But, telling the league you won't match invites a bidding war. It's the opposite of saying we'll match any offer, which could also be a smokescreen but one meant to deter competition. What this does, telling everyone you won't go above 7M or three years tells other teams to start talking to him and offering him a contract, which while it might start out low, say 8M per year, rises due to competition and the possible belief we won't match if they offer 10, 11 or more. Then, you either lose him for nothing without matching, or match and bring back a Reke who's already likely visited, been woo'd by and pictures himself with a new team, new coach, new city, etc, and likely isn't happy coming back as you already showed what you thought of him with your initial offer. And if he talks to other teams and signs for 10/11/12 and we don't match, well, you likely never found out if you could get him for 9-10 because you lowballed him right off the bat and then told him to go talk to other teams.
And if the plan is to lock him up the first week of July with a decent contract, I see no point in this type of a smokescreen, the opposite(we'll match anything) would actually make more sense.
To believe this is a smokescreen and that was the intent, you'd have to believe telling the league you won't match anything above 7M will deter competition, which I really don't see as likely, at all.
And personally, if I'm in a situation where the team shows they don't value me much and tells me to go find an offer and they'll match, I wouldn't be happy with negotiating with another team, picturing myself there and having my team who doesn't value me much threaten to simply match, and to counter that I reject all offers and leave unrestricted next year. That's a wildcard no one has brought up, that if Reke feels insulted by 7M per and/or is told to try to find a better deal and we'll possibly match, then just play out the year and not have that threat next year. It's not like he could be used any worse than Smart used him and his value will plummet even more.