The Future of Giants: The Dilemma of Guaranteed Money

As the July 17 deadline for Saquon Barkley and the New York Giants to reach a multiyear contract extension approaches, the two sides are still far from reaching an agreement. Sources say that the Giants returned to the negotiating table after the NFL draft to offer Barkley a smaller figure than the $13 million per year he previously rejected, but the amount of guaranteed money remains the primary sticking point.

Background

Barkley, one of the most talented running backs of his generation, is guaranteed to make $22.2 million over the next two years if he plays on the franchise tag this season ($10.1 million) and is tagged again next season at a 120% salary increase ($12.1 million). Most agents would use this total as the basement for guarantees. However, the unknown in all the reported offers thus far, including the initial one made last season, is the amount of guaranteed money included.

Philosophical Discussion

The Barkley-Giants contract negotiation is another example of the ongoing philosophical debate among NFL players, agents, and teams about how much guaranteed money a player ought to receive in a long-term contract. Barkley’s challenge is that he plays a position (running back) that bears a disproportionate amount of injury risk and is underpaid relative to its value.

Editorial

The Giants must understand the risks of being too stingy with guaranteed money in their negotiations with Barkley. For instance, if they insist on backloading an offer with essentially non-guaranteed “options” after the first two years, they risk alienating Barkley, thereby causing him to become more injury-prone or less productive on the field. A disgruntled Barkley could also make it difficult for the team to sign other top-tier players in the future.

Advice

While Barkley is motivated to secure a long-term deal that guarantees him more money than he would receive under the franchise tag, his easiest path to regaining the leverage lost under the tag will not materialize until after July 17. At that point, he can only play on the tag because further negotiations are prohibited. If he decides to push his absence as far as skipping the regular season, he may ultimately hurt his NFL career and lose potential earnings in the future. Rather than take that risk, Barkley should intensify his negotiations with the Giants, try to find common ground, and avoid the “worst-case scenario” of sitting out games.