His name pops up in every offseason discussion and people rant about why nothing has been done with him yet.
Here's the way I understand it:
Based on Spotrac he has a $6,875,000 cap hit for the upcoming season. I've read the most that can be freed up by cutting him is $4.5 mil....but thats just an estimate.
He has restructured his deal in past years to make more cap room. Restructured means moving money, not taking a cut. So part of this money is salary that based on the original contract would have been paid in previous years. Technically its money he's already earned.
NFL doesn't have guaranteed contracts, so he can be cut and most of this money and cap hit goes away.
THE GIANTS HAVE BEEN IN TALKS WITH HIM ABOUT TAKING A PAY CUT FOR 2013. Lots of people acting like he should be gone already and the Giants aren't doing anything, but that's not the case.
Giants have the position that Diehl must take a pay cut. He hasn't agreed yet (or so it seems).
The Giants have not cut him because:
They have no proven LG or RT for 2013. Diehl plays both positions. Even if Brewer is ready to start at RT, they have no option at LG with Boothe apparently seeking to cash in on the FA market (Bears want him).
They can't test the market for a LG or RT replacement until FA opens today in a few hours. If they can't land a better option, they need to make Diehl's contract work and keep him since he knows the system.
If they find a better option on the market, both a starter and possibly another cheap depth option....Diehl WILL BE cut. Guaranteed. But they need to explore their options first. It seems he's willing to take a cut but not as big of a cut as the Giants want.
They see what the going rate is for a FA.
They determine if its better value to sign a FA or take the cut that Diehl is willing to take.
If they find better value, they sign the new guy and tell Diehl he can take a very very substantial cut or leave.
If they don't find much better value, they agree to the cut Diehl is willing to take and hope for new bodies in the draft.
Let me know if I'm far off on anything here, but the overall point is that the Giants haven't not cut him without a good reason for it.