“Never argue with an idiot. They will only bring you down to their level and beat you with experience.” MB Rule # 1
My guess is simply that the team is using the time it has to find better options. They think they can do better than Diehl for substantially less money even after the charge for the cap. If they force the issue with Diehl now to either take a paycut or be cut, then they are stuck with him. They are just warehousing him to see what else they can find out there. If in the end they can't find better then they will move to cut him or resign him at a much lower scale IMO.
No one remembers who came in second.