A young player that hasn't consistently proven anything doesn't score an $8M per contract, especially when that player may not have a true position. With the new rules on the way I can't see many teams willing to offer much more than the full MLE.
I would be happy with him signing a 4 year deal with a 3.25 , 3.85 , 4.25, 4.75 million increment or something like that.
A torn labrum in his hip degenerative? ... Well, I guess if he loses blood supply post-op that's possible, but it's not like he's suffering necrosis right now. Don't get me wrong it's not "good," but this injury/surgery shouldn't have a ton of long-term impact during his playing career -- when he's 50 or 60 that might be a different story.