Did some research and here are the facts:
http://mlbplayers.mlb.com/pa/pdf/cba_english.pdf
ARTICLE XVI--Deferred Compensation
The operative sentence to the Giants defered contracts is as follows:
Deferred compensation obligations incurred in a Contract executed on or after September 30, 2002 must be fully funded by the Club, in an amount equal to the present value of the total deferred compensation obligation, on or before the second July 1 following the championship season in which the deferred compensation is earned.
What I think this means with regards to the Giants "Deferred Compensation" is the following:
Barry Bonds' 2006 $5M Deferred Salary must be funded by July 1st 2008. (Barry's 2002-2005 $5M each Deferred Salaries were funded in 2004-2007 respectively. Per Barry's 2002-2006 Contract his 2002 deferred salary was paid in 2007 with 2003-2006 Deferred salaries scheduled to be paid in 2008-2011.)
Barry Bonds' 2007 $5.8M deferred salary must be funded by July 1st 2009 and per his 2007 Contract will be paid in 2012.
Per Barry Bonds' 2007 Contract his $3.5M in deferred earned bonuses are to be both funded and paid in 2009.
Per Moises Alou's 2005-2006 Contract all deferred compensation was both funded and paid by the end of 2007.
Per Armando Benitez's 2005-2007 Contract it was his $7.4M signing bonus that was deferred not his yearly salaries. Therefore it all had to be funded by July 1st 2007 sense signing bonuses are earned at signing and not yearly as salaries are. Yes, $1.6M each is still to be paid in 2008 and 2009 but they have already been funded.
Per Mike Matheny's 2005-2007 Contract it was his $3M signing bonus that was deferred not his yearly salaries. Therefore, like in Benitez's case, it all had to be funded by July 1st 2007. In Mike's case it all had to be paid by 2007 as well.
Per Omar Vizquel's 2005-2007 Contract it was his $1.75M signing bonus that was deferred not his yearly salaries. Therefore (like Benitez and Matheny) it all had to be funded by July 1st 2007 sense signing bonuses are earned at signing and not yearly as salaries are. Yes $1M and 0.75M respectively are still to be paid in 2008 and 2009 but they have already been funded.
Bottom line, only some of Barry Bonds' Deferred Compensation is yet to be Funded. Barry's $5M Deferred Salary from 2006 must be funded in 2008, and his $5.8M 2007 Deferred Salary and $3.5M Deferred Earned Bonuses must be funded in 2009. I am guessing that the Giants are choosing to fund all $14.3M of this in 2008 so that they are free of these obligations in 2009 when they will make a serious run at competing again.
The most optimism? How about if the Giants complete the nearly impossible and finish barely above .500 at 83-79 as Lincecum and Cain win 8 1-0 decision apiece. Meanwhile the rest of the league underachieves, Peavy gets hurt, the Dodgers' kids go into the tank, the Rockies' pitching implodes and half of the D-Backs test positive for steroids three times and miss the season. So, just like the Padres did a couple years ago, we win the division at .500 and get swept by the Phillies in the first round of the playoffs.