The contract that San Francisco 49ers quarterback Colin Kaepernick signed in June of last year marks a new era regarding money paid to quarterbacks.
It’s not the value or length—six years, $114 million—nor the guaranteed money—$61 million—that makes it so curious. After all, it’s rare that a quarterback ever sees the full value of a contract he signs nowadays.
No, it’s the structure that was so curious at the time. For each year from 2015 through 2017, Kaepernick’s yearly salary does not become fully guaranteed until April 1. He also has a yearly, $2 million de-escalator taken out of his salary should he not be named a first or second-team All-Pro or not lead the Niners to an NFC championship, while at the same time playing 80 percent of all regular and postseason snaps.
Essentially, this means that the 49ers can opt out of Kaepernick’s contract at any point between the end of a season and the first of April and not be on the hook for any dead salary cap space beyond his signing bonus, the remainder of which right now is a prorated $7,397,259. The move was intentional—it protects the 49ers from sinking a ton of cash and cap space into a player who may or may not pan out, but if Kaepernick performs at a high level, he’ll continue to earn not only the trust of his team, as well as management and ownership, but also more money.
This news is both good and bad for the 49ers, because as it stands now, the team might be wise to part ways with Kaepernick after the 2015 season has wrapped. That is, as long as Kaepernick continues down the path he’s been on to start the year. While his completion percentage of 62.1 is one of the best he’s posted in his career, he’s thrown only two touchdowns to five interceptions, while taking 14 sacks. He’s still as mobile as ever, averaging 5.9 yards per carry on his 33 runs and/or scrambles, but he’s already fumbled three times. His quarterback rating is just 67.7 and he has only 727 passing yards so far this year.
The heroics Kaepernick displayed in 2012 and 2013 are gone, and in their place are erroneous throws to players who can’t help him. Tight end Vernon Davis is all but done, receiver Torrey Smith does not fit the offense and Kaepernick isn’t being bailed out by running back Carlos Hyde in the way he was by Frank Gore. The whole offense is a mess, and while Kaepernick isn’t solely to blame, he’s an easy scapegoat especially considering the contract.
In fact, “easy scapegoat,” may have been one (minor) reason as to why Jed York and Trent Baalke put this contract together in the first place. It was done when then-head coach Jim Harbaugh was effectively out the door, and Harbaugh is the man who can be credited somewhat for “creating” Kaepernick—he is a former quarterback, after all, who still behaves like an active quarterback. Harbaugh’s absence is likely one of the reasons Kaepernick’s play has declined, and it paves the way for the quarterback to be shown the door next.
The fact remains, though, that the Niners found a way to cover their backside if Kaepernick for whatever reason does not pan out, but can also pay him handsomely if he does. It’s the new way of structuring contracts in the NFL, and it’s a fair one. But Kaepernick’s pioneer contract may also make him the structure’s first victim, for reasons less fair. All of the changes the 49ers undertook for its offense in the months leading up to the season have hurt Kaepernick the most on the field, and now they could hurt him in his checking account as well.