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It doesn't need to be balanced. It's a matter of personal preference. And the side plate has nothing to do with it being out of balance. It's due to Penn never putting a counterweight opposite the pick-up arm in the 706 cup. They have one in the 704, but not the 706.
If you're used to a super-smooth reel with a balanced rotor, the wobble in the cup might bother you. Many people fish 706s just they way they come.
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