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i think cal is a very good rider and can still improve a lot more, Yamaha are just thinking they want to get Espargaro before Honda do so they have to act quick. smith would lose hes seat if it wasn't for the 2 year deal.
but anyway, this is not over for cal as i can see honda offering him a ride.
hes shown this year hes got the skill, he will get the offers for sure.