Giants' cash position and implications for 2024 offseason

Right now, Over the Cap projects the Giants' 2024 cash obligations as $161,745,145.

That does not include another $30 million in cash that will be needed for rookie signing bonuses. See (add up the signing bonuses for each pick assigned to the Giants).

So, right now, the Giants' anticipated cash obligations add up to about $190 million.

Over the Cap projects the 2024 salary cap at $242 million which would leave the Giants' current cash obligations about $52 million below the cap. Sounds like a lot of money to spend, right? Well maybe not.

Historically, the Giants have spent almost exactly the amount of the salary cap when averaged over multiple years. For instance in 2020, 2021 and 2022 the salary cap aggregated $588.9 million and the Giants' cash spend was $591.5 million - 100.44% of the salary cap. This is very typical of the Giants' cash management since 2011. Over that period, there were some years when the Giants' spent more cash than the cap but these were invariably followed by years when the Giants spent less with the apparently deliberate result that their cash expenditures averaged out to just amount 100 % of the cap.

Bear in mind that the salary cap does not absolutely limit cash spending. Some teams have routinely spent more cash than the amount of the cap (called cash over cap) while other teams have routinely spent less than the cap. Under the current CBA individual teams are only required to spend 90% of the cap on average while the league as a whole must average 95% of the cap in cash spending. The Giants have routinely been middle of the pack from a cash perspective.

Given this history, I wonder how the Giants will deal with the fact that their 2023 cash spending was $35+ million more than the salary cap: $260.5 million vs. $224.8 million. Will the Giants try to make back some or all of that $35+ million deficit by pulling back on the pursestrings in 2024? That would be consistent with prior behavior. If so, Schoen will have much less than $52 million to work with.

What does all this all mean? If they sign Barkley - or franchise him, they will spend about $12 million in 2024 cash. For McKinney that number would be something north of $15 million. While some of that could be covered by outright cuts (Glowinski?) or pay cuts (Waller?), there may be very little cash to do anything else.

Although the Giants' have a decent amount of salary cap space, I fear that cash budget decisions will limit the resources available to Schoen to sign his own free agents and upgrade the roster in the FA market. We'll have to have to wait to see how this plays out.

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