|
Quote (also, lol @ the Ravens accusing someone else of over-paying for a QB):
http://deadspin.com/colin-kaepernicks-126-million-contract-is-remarkably-1586520353
Pro Football Talk has the contract language (link), and it's a unique deal in two ways. First, since the initial five years are guaranteed for injury only, the Niners can cut Kaepernick at any time and not owe him a thing—it's pay-as-you-go. Second, instead of bonuses, the deal contains a de-escalator clause that requires Kaepernick to be wildly successful, or his payout drops each year.
Kaepernick's signing bonus is a relatively small $12.3 million. Spread out over the life of the deal, that's just $2 million a year in guaranteed cap hit. "Part of the way the contract is written," Kaepernick said, "was so would be able to sign other players." Fine. That's standard.
The non-guarantees aren't. With his base salary going up every year (From 2015 on: $12.4M, $13.9M, $16.5M, $17M, $18.8M), Kaepernick is relatively cheap early on. And if he becomes ineffective—or just too expensive—the Niners can cut him at any time and be off the hook. Jason La Canfora has a good way to look at the deal from San Francisco's perspective:
Jason La Canfora ✔ @JasonLaCanfora Kaepernick's deal includes de-escalators that could reduce max worth from $126M-$114M. Deal could be looked at as 2yrs/$28m, pay as you go
Jason La Canfora ✔ @JasonLaCanfora Deal has record $61M injury guarantees, but would be worth $44M/3yrs; $63M/4yrs; $82M/5yrs. 5yr avg in total $ is $16.4M='14 franchise tag
That's much less that the effective salary for, say, Joe Flacco, even though the Ravens are touting Kaepernick's ascension on an arbitrary "most overpaid list."
If Kaepernick does get hurt, his money through 2018 is guaranteed for injury. The Niners thought of that too. The contract requires Kaepernick to buy his own insurance policy that will pay the 49ers $20 million after-tax in the case of a career-ending injury.
|