Obv the later you stay in the better though, as you can make the decision whether to TIE or not, and thus gives you more flexibility
In the case of what's best for Red's team I'm on the fence. He's carrying the 2nd lowest payroll in the great 8 and likely won't be able afford to throw league games to ensure 6 or better placing.
Another thing to consider is if you do go out of the cup early you have the benefit in focusing on perfect mins and off-position training. If managed well that could offset some (most?) of the impact of an early cup loss.
"Well, no ones gonna top that." - http://tinyurl.com/noigttt