Yes it would set a bad precedent. And, as Woodon points out, $1M is chump change. I think if Miami wants out they could find the money in the petty cash drawer.
What makes him a good player? 9 points in 44 games in the USHL, 32 points in 55 games in the NAHL,9 points in 29 games at AIC and then a good season 29 points in 28 games at Lindenwood (with 87 PIM). He does fill a need but the numbers don't scream good player.
Here's a question for NHL gurus. When a player signs a contract, is the money expressed in US dollars or Canadian dollars when they sign with a Canadian team?