The Giants had significant football reasons to release Victor Cruz and Rashad Jennings, but the immediate impact of the cuts will be financial.

What do Giants cuts mean for JPP?

General manager Jerry Reese freed up $10 million in 2017 salary cap space Monday by moving on from Cruz and Jennings. The cuts give the Giants somewhere around $30 million in cap space, according to Over The Cap. They also give the Giants a boost in their pursuit of free agent-to-be Jason Pierre-Paul entering a pivotal two-week period.

Wednesday (February 15) is the first day teams can place franchise or transition tags on their own free agents. Clubs have until 4 p.m. on Wednesday, March 1 to use the tag (here's everything you need to know about the tag). 

In a perfect world, the Giants would re-sign Pierre-Paul prior to the tag deadline. Every indication suggests that will be the team's goal. But what happens if the Giants can't strike a deal with their star pass rusher by, say, midday on March 1? That's when things would get interesting. 

The tag may seem like a no-brainer move - it all but ensures Pierre-Paul plays for the Giants in 2017 - but it's much more complicated than that. Here's a rundown of the situation: 

The basics: Pierre-Paul, 28, is set to be a free agent after playing the 2016 season on a one-year, prove-it deal. Pierre-Paul proved it, delivering a dominant stretch of play before suffering a season-ending core muscle injury. He is now looking at what is likely his last chance at a major payday, and he reportedly (and understandably) wants to be paid at the same rate as teammate Olivier Vernon. Vernon received a five-year, $85 million contract ($52.5 million guaranteed) with the Giants last March.

The benefits of the tag: First and foremost, it pretty much guarantees Pierre-Paul will play for the Giants next season. That's the end goal, obviously, for a team that went 11-5 and made the playoffs behind a young defense that emerged as an elite unit in the second half of the season. With the right offseason moves, the Giants will enter 2017 as a legitimate Super Bowl contender. Bringing Pierre-Paul back would be a boon for those hopes.

Mapping out Giants' 2017 offseason

If the Giants and Pierre-Paul cannot reach a deal by March 1, but the team feels a deal would still be possible, the tag buys them time. It would more or less insulate Pierre-Paul from the rest of the market, and allow negotiations to continue. Teams have until July 15 to sign players who receive the franchise tag to long-term deals.

The downsides of the tag: Pierre-Paul was pretty blunt about the fact he would not be happy if the Giants tagged him again (they also did it in 2015, but that situation was thrown for a complete loop by his fireworks accident). No player is ever happy about the tag, so that is not a a major concern. The Giants have to understand, though, they are creating the possibility of some animosity developing in the proceedings by using the tag. 

The bigger issue: The Giants would be tying up about half their available cap space one fell swoop. The NFL and NFLPA have not yet confirmed the 2017 salary cap number and the corresponding tag rates, but a CBS Sports projection (based on an assumed $168 million cap) put the defensive end tag level at just under $17 million.

If Pierre-Paul is tagged, the Giants are immediately carrying a 2017 cap hit of $17 million. The salary is 100 percent guaranteed for Pierre-Paul once he signs the tender. If the Giants and Pierre-Paul strike a deal, the tender is torn up and the cap hit will go down. But if there's no deal, Pierre-Paul signs the tender and he plays the season at the tag rate. The Giants and Pierre-Paul then do this again in 2018, with his tag rate next season going even higher.

On-field impact of Giants releasing Victor Cruz and Rashad Jennings

Forget about the transition tag: It would be worthless for the Giants. The transition tender is cheaper than a franchise tag (it was $3 million less for defensive ends in 2016), but all it guarantees the Giants is the right of refusal. If Pierre-Paul gets an offer the Giants can't or won't match, they get nothing, as they forfeit the possibility of a 2018 compensatory pick by using the transition tag. If they tag Pierre-Paul, they will likely use the non-exclusive franchise tag.

If the Giants go the non-exclusive route, he'd be able to negotiate with other teams and sign an offer sheet. The Giants would then have the right to match, or receive two first-round picks as compensation. It's tough to see a team thinking Pierre-Paul is worth a major deal, plus two first-round picks.

Bottom line: The Giants' chances of bringing Pierre-Paul back are stronger than they were a week ago, but they are far from guaranteed. They have an advantage at the moment - they are the only club that can talk to Pierre-Paul right now - but that advantage will be short-lived if they can't strike a deal. The decision whether to use the tag or not likely should come down to a simple belief: Can they get a deal done with extra time?

If the answer is yes, the tag make sense as a placeholder, albeit a pricey one. The tag could become a burden, though, if the Giants can't get a deal done. Pierre-Paul is a very good player, and he makes the Giants a better team, but tying up so much cap space into him could hinder the Giants on all other fronts this offseason.

The Giants may be facing a major risk-reward decision in two weeks.

TALK IS CHEAP: The JPP decision looms; what should Giants do? Subscribe to the podcast on iTunes, Google Play, Soundcloud or iHeartRadio. James Kratch may be reached at jkratch@njadvancemedia.com. Follow him on Twitter @JamesKratch. Find our Giants coverage on Facebook.   

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