When Dave Gettleman was announced as the new general manager of the New York Giants, one of the many questions that came up during his press conference involved franchise quarterback Eli Manning and his future with the team.
“Listen, Eli has won a lot of games. He’s a great competitor,” Gettleman said.
“He’s very intelligent, and he and I are going to talk. If what I saw (against) Philadelphia was not a mirage — and I don’t believe it was — then we’ll just keep moving.”
With the Giants currently holding the No. 2 pick in the 2018 draft, there has been some speculation as to whether they will continue to carry his contract.
According to figures obtained via Over the Cap, Manning’s $22.2 million cap figure in 2018 consists of $10.5 million base salary, a $6.2 million prorated signing bonus, a $5 million roster bonus and a $500,000 workout bonus.
Manning’s cap figure alone accounts for an estimated 12.5 percent of the Giants 2018 salary cap based on the projected Top 51 highest salaries, which as of March 14, the start of the new league year, are the only salaries that are going to count against the team’s cap.
Let’s look at some of the financial ramifications, including how the Giants could potentially afford to keep Manning if they choose to.
Pre-June 1 cut: $9.8 million savings
If the Giants were to cut Manning before June 1 and before he has a chance to earn his $500,000 workout bonus, they would save $9.6 million.
However, the Giants would also be hit with a $12.4 million dead money cap charge as the remaining prorated portion of Manning’s signing bonus ($6.2 million per year) would accelerate into the team’s 2018 cap. That’s money that cannot be spent on any other players.
Post-June 1 cut: $16 million savings
If the Giants were to cut Manning and designate him as a post-June 1 cut, that would certainly alleviate some of the financial strain in the dead money column.
Such a move (which by the way doesn’t have to be done after June 1, but which must be designated by the Giants as a post-June 1 transaction accordingly), would increase the cap savings to $16 million with a dead money cap hit of $6.2 million.
There are two other caveats, though. First, the remaining part of Manning’s signing bonus ($6.2 million) would hit their 2019 cap.
Secondly, the Giants wouldn’t receive the savings until — you guessed it — June 1, which means that if they wanted to use the savings to land a big-fish free agent, they couldn’t.
Trade: $9.8 million savings
If the Giants were to find a trade partner for Manning, the new team would assume the financial ramifications for his base salary and his workout bonus (depending on when the trade was to be executed).
However, the Giants would still be on the hook for the $12.4 million prorated signing bonus that accelerates into their 2018 cap.
Also, depending on when the trade was executed, the Giants could be on the hook for other things such as that $5 million roster bonus due to Manning on the third day of the 2018 league year.
The likely option: Rework Manning’s contract
Assuming that Manning is agreeable to reworking his contract, his 2018 cap hit needs to come down.
My proposal would be to turn the $5 million roster bonus that’s due by the fifth day of the 2018 league year and some of his $10.5 million base salary into a signing bonus that can be prorated over the remaining years on the contract. This new guaranteed money plus guaranteeing the reduced base salary would hopefully be enough incentive to get Manning to agree to a restructure.
I would then tack on another year to his contract so that the money that’s being converted into a signing bonus is spread out over three years instead of two which would lessen the cap hit if they move on from him in 2019.
Here is an example:
Sample Eli Manning Contract Restructure
|Original Cap Hit||$22,200,000||$23,200,000||N/A|
|Prorated Signing Bonus (from Original Extension)||$6,200,000||$6,200,000||N/A|
|Additional Prorated Signing Bonus $12.5M)||$4,160,000||$4,160,000||$4,160,000|
|Total Cap Hit||$13,860,000||$27,360,000||$10,705,000|
|Dead Money (pre-June 1)||N/A||$14,520,000||$4,160,000|
|Dead Money (post-June 1)||N/A||$10,360,000||$4,160,000|
Source : https://www.bigblueview.com/2018/1/12/16868224/what-are-the-salary-cap-ramifications-if-giants-move-on-from-eli-manning