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Kaepernick gets 126m for Six seriously!

BurnleyJet

By BurnleyJet
in NY Jets Forum

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pdxgreen

pdxgreen

Posted
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   I always love how they work their contracts so they receive less money if the team buys free agents.  So the team

can work around salary cap.  Of course, if I was working for minimum wage and the boss asked me to take a lower one

because of a salary cap.  Sure!!  I'll do it.  The salary cap was introduced to save the owners money.  That's it.

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slats

slats

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Over 60 million guaranteed..... Yuck. Can't wait to see what Luck gets. This is why it's good to have a QB who sucks ;)

Looking at the contract details, it's a pretty crappy deal for Kaepernick. Those guarantees are only for injury, until April 1 of each year, and there's a de-escalator of $2M a year unless/until he takes 80% of the team's snaps and leads them to the Super Bowl, or makes the AP All Pro team. Really, not much of that guaranteed money is guaranteed at all.

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Jetlife33

Jetlife33

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Looking at the contract details, it's a pretty crappy deal for Kaepernick. Those guarantees are only for injury, until April 1 of each year, and there's a de-escalator of $2M a year unless/until he takes 80% of the team's snaps and leads them to the Super Bowl, or makes the AP All Pro team. Really, not much of that guaranteed money is guaranteed at all.

So do we know exactly how much is guaranteed? I thought all the things you mentioned were incentives on top of the 60+ mill, my mistake.

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slats

slats

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So do we know exactly how much is guaranteed? I thought all the things you mentioned were incentives on top of the 60+ mill, my mistake.

Here's an explanation from profootballtalk.com. Basically, the only truly guaranteed money is his $12+M signing bonus. Everything else is guaranteed only for injury - and he's required to take out an insurance policy that pays the 49ers $20M should he suffer a career ending injury.

Technically, the deal has $61 million guaranteed, even though $6 million of the guaranteed salary could evaporate (more on that later). Either way, only $13.073 million is guaranteed at signing. It comes in the form of a $12.328 million signing bonus, a base salary of $645,000, and a workout bonus of $100,000.

For 2014, 2015, 2016, 2017, and part of 2018, the base salaries are guaranteed only for injury. On April 1 of each year, the guarantees convert from injury only to fully guaranteed. That gives the 49ers the ability to decide, in any given year, to move on from Kaepernick. And with the deadline for the conversion of the guarantee coming on April 1, the 49ers can squat on his rights until several weeks after the start of free agency, making it harder for him to get paid elsewhere.

The base salary for 2015 is $12.4 million, guaranteed for injury only until April 1, 2015.

For 2016, the base salary is $13.9 million, guaranteed for injury only until April 1, 2016.

For 2017, the base salary is $16.5 million, guaranteed for injury only until April 1, 2017.

For 2018, the base salary is $17 million, $5.2 million of which is guaranteed for injury only until April 1, 2018.

The non-guaranteed base salary for 2019 is $18.8 million, and the non-guaranteed base salary for 2020 is $21 million.

In each year from 2015 through 2020, however, there’s a catch. A big one. The total payout potentially de-escalates by $2 million per year, with up to $12 million potentially going away.

Kaepernick can halt the de-escalation by taking, in any year of the deal, 80 percent of the snaps and if: (1) the 49ers appear in the Super Bowl; or (2) Kaepernick is named a first-team or second-team All-Pro. If he satisfies the requirement in 2014, the full $12 million remains. If he fails in 2014 but succeeds in 2015, $10 million stays. If he does it for the first time in 2016, $8 million remains. If he does it for the first time in 2017, $6 million stays — and so on until 2019, when if he satisfies the requirement that year for the first time $2 million stays in the deal for 2010.

It’s a convoluted way to pump up the base value of the deal artificially, allowing Kaepernick and his agents to claim that the deal is better than it will be, unless he satisfies the requirements to stop the de-escalator this year.

The contract also includes, starting in 2015, a whopping $2 million per year in per-game roster bonuses, an amount that one source characterized as “massive” in comparison to similar deals. It means that, for every game Kaepernick misses due to injury after the 2014 season, he loses $125,000.

Starting in 2015, $400,000 per year is tied to workout bonuses, which adds up to $2.4 million of the base value.

The contract also requires Kaepernick to purchase, with after-tax dollars, a disability policy that pays the 49ers $20 million if he suffers a career-ending injury.

As one source put it, Kaepernick can feel good about the deal because he has a lot more guaranteed money today than he had yesterday. But the same source also added that the 49ers are nevertheless “thrilled” with the contract, which allows them to control Kaepernick’s rights for seven years and to move on after any of the next six seasons, if they ultimately decide that Kaepernick is more like the guy who struggled at times during the 2013 regular season and less like the guy who found the gas pedal in the playoffs.

If they keep him, the average payout will be low in comparison to other franchise quarterbacks, and the difference will become glaring as other franchise quarterbacks get new deals under a salary cap that is expected to continue to spike.

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Sperm Edwards

Sperm Edwards

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Looking at the contract details, it's a pretty crappy deal for Kaepernick. Those guarantees are only for injury, until April 1 of each year, and there's a de-escalator of $2M a year unless/until he takes 80% of the team's snaps and leads them to the Super Bowl, or makes the AP All Pro team. Really, not much of that guaranteed money is guaranteed at all.

 

Well it's only crappy if you're starting from the standpoint that he's worth anywhere near $60M guaranteed in the first place, which he isn't.

 

Plus even though it clearly isn't (on paper), he effectively has more than 1 year guaranteed unless he suddenly becomes Sanchez-bad.  If he's getting a $12M SB on a 6 year deal, then the amortization if $2M/year.  To cut him pre-2015 costs the team $10M.  To keep him it costs the team $14M.  Possible if he is just that terrible in 2014, but not likely.  From the bill-payer's point of view, that acceleration on the cap isn't a true cost; he paid $12M for Kaepernick for 2014 and that's that if they cut ties with him after that.  The team gets that $10M accelerated cap hit, but the spending limit should go up by nearly that much anyway.

 

Basically it guarantees him to be set up for life if he's worth it.  If his career gets cut short due to injury, then he's still set for life.  Looking at it that way, it's a fair deal.  If he's elite he gets paid like he's elite; if he's not he doesn't; if he would have had an elite career but for getting hurt playing for SF, he also gets paid like he would have been an elite player. 

 

From the player's standpoint it isn't one of those bloated overpayment deals like lesser players got (Sanchez, Holmes, etc.), but why should he get paid $20M/year if he isn't worth it? 

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Jetlife33

Jetlife33

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Here's an explanation from profootballtalk.com. Basically, the only truly guaranteed money is his $12+M signing bonus. Everything else is guaranteed only for injury - and he's required to take out an insurance policy that pays the 49ers $20M should he suffer a career ending injury.

Technically, the deal has $61 million guaranteed, even though $6 million of the guaranteed salary could evaporate (more on that later). Either way, only $13.073 million is guaranteed at signing. It comes in the form of a $12.328 million signing bonus, a base salary of $645,000, and a workout bonus of $100,000.

For 2014, 2015, 2016, 2017, and part of 2018, the base salaries are guaranteed only for injury. On April 1 of each year, the guarantees convert from injury only to fully guaranteed. That gives the 49ers the ability to decide, in any given year, to move on from Kaepernick. And with the deadline for the conversion of the guarantee coming on April 1, the 49ers can squat on his rights until several weeks after the start of free agency, making it harder for him to get paid elsewhere.

The base salary for 2015 is $12.4 million, guaranteed for injury only until April 1, 2015.

For 2016, the base salary is $13.9 million, guaranteed for injury only until April 1, 2016.

For 2017, the base salary is $16.5 million, guaranteed for injury only until April 1, 2017.

For 2018, the base salary is $17 million, $5.2 million of which is guaranteed for injury only until April 1, 2018.

The non-guaranteed base salary for 2019 is $18.8 million, and the non-guaranteed base salary for 2020 is $21 million.

In each year from 2015 through 2020, however, there’s a catch. A big one. The total payout potentially de-escalates by $2 million per year, with up to $12 million potentially going away.

Kaepernick can halt the de-escalation by taking, in any year of the deal, 80 percent of the snaps and if: (1) the 49ers appear in the Super Bowl; or (2) Kaepernick is named a first-team or second-team All-Pro. If he satisfies the requirement in 2014, the full $12 million remains. If he fails in 2014 but succeeds in 2015, $10 million stays. If he does it for the first time in 2016, $8 million remains. If he does it for the first time in 2017, $6 million stays — and so on until 2019, when if he satisfies the requirement that year for the first time $2 million stays in the deal for 2010.

It’s a convoluted way to pump up the base value of the deal artificially, allowing Kaepernick and his agents to claim that the deal is better than it will be, unless he satisfies the requirements to stop the de-escalator this year.

The contract also includes, starting in 2015, a whopping $2 million per year in per-game roster bonuses, an amount that one source characterized as “massive” in comparison to similar deals. It means that, for every game Kaepernick misses due to injury after the 2014 season, he loses $125,000.

Starting in 2015, $400,000 per year is tied to workout bonuses, which adds up to $2.4 million of the base value.

The contract also requires Kaepernick to purchase, with after-tax dollars, a disability policy that pays the 49ers $20 million if he suffers a career-ending injury.

As one source put it, Kaepernick can feel good about the deal because he has a lot more guaranteed money today than he had yesterday. But the same source also added that the 49ers are nevertheless “thrilled” with the contract, which allows them to control Kaepernick’s rights for seven years and to move on after any of the next six seasons, if they ultimately decide that Kaepernick is more like the guy who struggled at times during the 2013 regular season and less like the guy who found the gas pedal in the playoffs.

If they keep him, the average payout will be low in comparison to other franchise quarterbacks, and the difference will become glaring as other franchise quarterbacks get new deals under a salary cap that is expected to continue to spike.

Wow thanks for the details on the deal, well appreciated Slats.

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slats

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Well it's only crappy if you're starting from the standpoint that he's worth anywhere near $60M guaranteed in the first place, which he isn't.

 

Plus even though it clearly isn't (on paper), he effectively has more than 1 year guaranteed unless he suddenly becomes Sanchez-bad.  If he's getting a $12M SB on a 6 year deal, then the amortization if $2M/year.  To cut him pre-2015 costs the team $10M.  To keep him it costs the team $14M.  Possible if he is just that terrible in 2014, but not likely.  From the bill-payer's point of view, that acceleration on the cap isn't a true cost; he paid $12M for Kaepernick for 2014 and that's that if they cut ties with him after that.  The team gets that $10M accelerated cap hit, but the spending limit should go up by nearly that much anyway.

 

Basically it guarantees him to be set up for life if he's worth it.  If his career gets cut short due to injury, then he's still set for life.  Looking at it that way, it's a fair deal.  If he's elite he gets paid like he's elite; if he's not he doesn't; if he would have had an elite career but for getting hurt playing for SF, he also gets paid like he would have been an elite player. 

 

From the player's standpoint it isn't one of those bloated overpayment deals like lesser players got (Sanchez, Holmes, etc.), but why should he get paid $20M/year if he isn't worth it?

I think it's crappy in the sense that both the team and the player are advertising a 6 year deal worth $128M, with $61M guaranteed, and that it's highly unlikely that he'll see the full value of the deal. I agree that it's unlikely that he'll be cut before the 2015 season, but it is possible. Especially if he sucks enough to get Harbaugh fired. The fact that it's basically a series of one year deals, but that San Fran holds his rights for the first few weeks of free agency every year before having to commit to him also really weakens his stance. They can wait until all the big QB money is spent in any given year, then offer Kaepernick a paycut or leave deal.

And no, I didn't think he was worth the deal being reported, but that doesn't make the deal he signed a good one. You talk about Revis forgoing guarantees to cash in every year in lieu of security, and here's Kaepernick signing a long term deal that should offer him security, but it really doesn't.

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Sperm Edwards

Sperm Edwards

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I think it's crappy in the sense that both the team and the player are advertising a 6 year deal worth $128M, with $61M guaranteed, and that it's highly unlikely that he'll see the full value of the deal. I agree that it's unlikely that he'll be cut before the 2015 season, but it is possible. Especially if he sucks enough to get Harbaugh fired. The fact that it's basically a series of one year deals, but that San Fran holds his rights for the first few weeks of free agency every year before having to commit to him also really weakens his stance. They can wait until all the big QB money is spent in any given year, then offer Kaepernick a paycut or leave deal.

And no, I didn't think he was worth the deal being reported, but that doesn't make the deal he signed a good one. You talk about Revis forgoing guarantees to cash in every year in lieu of security, and here's Kaepernick signing a long term deal that should offer him security, but it really doesn't.

 

If it doesn't bother the team and the player, it shouldn't really bother you.  Yes, the $61M should have a Pats-superbowl * next to it since that amount is guaranteed for injury alone.  But if it makes him feel better about himself to say it, the agent likes to brag that's what he got for his client, and the team likes to look like they're giving more than they have, then I don't see the harm.  People exaggerate things all the time, and if he ends up getting cut then his fairy tale is over.  

 

Mangold and Ferguson had similarly deceptive-sounding guarantee here in that they had big guarantees, but they didn't truly kick in until year 2 or after year 2 or something of the contract. I can't remember offhand if Ferguson's guarantee was for skill but not injury or the other way around, but once he got past that first year or so then he got a giant bonus that was his guarantee.  Part of that was Tannenbaum playing CYA, but I think a bigger part of it was to get around rules as to how much salary disparity there was allowed from one year to the next (couldn't go from year minimum in year 1 to $10M in year 2 or something).  

 

Now in hindsight no one thinks about all that with Ferguson & others really because ultimately nothing came of it.  But in their then-present situations, the players felt they were better off taking that deal than not even though they clearly could have gotten better deals as totally free UFA with no team owning any rights to him.  Probably Kaepernick felt the same thing.  It's a year-to-year deal in a sense, because technically he can be cut for skill.  But his game isn't merely being a pocket passer (or even a mobile pocket passer); he runs and his injury risk is high. Kind of like Vick, except he's much bigger so he can probably take a bigger punishment.  But no one is so big/strong that he never gets injured. Look at Roethlisberger. Guy is a giant goon and clearly very tough physically (especially with women), and he's hurt all the time.

 

So now Kaepernick doesn't have to worry about losing out on his big payday due to a sudden, freak injury.  If I was him that would be my biggest concern.  If he's still a top-15 QB then he's not getting cut so fast even if Harbaugh is fired; there just aren't enough decent QBs on the planet.  Also he's young enough that if he does get cut within the first few years, he'll have every opportunity to do a 1-year show-me deal from lots of teams and cash in huge again. Maybe even twice more.

 

I think it's a fair deal. If he gets injured he's not left with nothing. If he's a top-tier QB (or even close enough to being one) he'll get paid like one. If he's terrible he'll get cut.  No reason anyone should pay him $15-20M/year if he's awful.  If he's unjustly cut while still a good or great QB, he'll clean up plenty with someone else (and with the opportunity to avoid California's 13.3% state income tax for 8+ games in the process), and it won't take long at all.

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jason423

jason423

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If it doesn't bother the team and the player, it shouldn't really bother you.  Yes, the $61M should have a Pats-superbowl * next to it since that amount is guaranteed for injury alone.  But if it makes him feel better about himself to say it, the agent likes to brag that's what he got for his client, and the team likes to look like they're giving more than they have, then I don't see the harm.  People exaggerate things all the time, and if he ends up getting cut then his fairy tale is over.  

 

Mangold and Ferguson had similarly deceptive-sounding guarantee here in that they had big guarantees, but they didn't truly kick in until year 2 or after year 2 or something of the contract. I can't remember offhand if Ferguson's guarantee was for skill but not injury or the other way around, but once he got past that first year or so then he got a giant bonus that was his guarantee.  Part of that was Tannenbaum playing CYA, but I think a bigger part of it was to get around rules as to how much salary disparity there was allowed from one year to the next (couldn't go from year minimum in year 1 to $10M in year 2 or something).  

 

Now in hindsight no one thinks about all that with Ferguson & others really because ultimately nothing came of it.  But in their then-present situations, the players felt they were better off taking that deal than not even though they clearly could have gotten better deals as totally free UFA with no team owning any rights to him.  Probably Kaepernick felt the same thing.  It's a year-to-year deal in a sense, because technically he can be cut for skill.  But his game isn't merely being a pocket passer (or even a mobile pocket passer); he runs and his injury risk is high. Kind of like Vick, except he's much bigger so he can probably take a bigger punishment.  But no one is so big/strong that he never gets injured. Look at Roethlisberger. Guy is a giant goon and clearly very tough physically (especially with women), and he's hurt all the time.

 

So now Kaepernick doesn't have to worry about losing out on his big payday due to a sudden, freak injury.  If I was him that would be my biggest concern.  If he's still a top-15 QB then he's not getting cut so fast even if Harbaugh is fired; there just aren't enough decent QBs on the planet.  Also he's young enough that if he does get cut within the first few years, he'll have every opportunity to do a 1-year show-me deal from lots of teams and cash in huge again. Maybe even twice more.

 

I think it's a fair deal. If he gets injured he's not left with nothing. If he's a top-tier QB (or even close enough to being one) he'll get paid like one. If he's terrible he'll get cut.  No reason anyone should pay him $15-20M/year if he's awful.  If he's unjustly cut while still a good or great QB, he'll clean up plenty with someone else (and with the opportunity to avoid California's 13.3% state income tax for 8+ games in the process), and it won't take long at all.

 

This is a really good look at it. Kaepernick basically had three options on the table. Sign some type of deal (3 year maybe?) with bigger guarantees and a lower APY, sign the deal he signed, or play it out like Flacco and hope he wins the Super Bowl. His contract gives him the Flacco upside if he makes the SB- its the identical 3 year payout and then grows a bit higher from there--- but he doesnt take the big injury risk Flacco got. If he doesnt get to the SB his deal is basically in the $18 million a year range over 5 years which is all he would have gotten anyway as a free agent.

 

Essentially his 2015 salary is fully guaranteed as there is almost nothing he could do that would cost him that spot. The lone risk is the 2016 year. If he does get injured in 2014 in a major way (Achilles, ACL) and is never the same player they will look to do something with him in 2016. If he got hurt in 2015 my guess is he would be fine in 2016 unless he stunk in 2014. If he gets to 2016 the total money he will earn is in the Cutler/Romo ballpark which is what Kaepernick likely would have received on a straight extension. Thats really his gamble. 

 

I think its a good deal for both sides though I would not expect many others to make the same kind of deal. 

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Sperm Edwards

Sperm Edwards

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This is a really good look at it. Kaepernick basically had three options on the table. Sign some type of deal (3 year maybe?) with bigger guarantees and a lower APY, sign the deal he signed, or play it out like Flacco and hope he wins the Super Bowl. His contract gives him the Flacco upside if he makes the SB- its the identical 3 year payout and then grows a bit higher from there--- but he doesnt take the big injury risk Flacco got. If he doesnt get to the SB his deal is basically in the $18 million a year range over 5 years which is all he would have gotten anyway as a free agent.

 

Essentially his 2015 salary is fully guaranteed as there is almost nothing he could do that would cost him that spot. The lone risk is the 2016 year. If he does get injured in 2014 in a major way (Achilles, ACL) and is never the same player they will look to do something with him in 2016. If he got hurt in 2015 my guess is he would be fine in 2016 unless he stunk in 2014. If he gets to 2016 the total money he will earn is in the Cutler/Romo ballpark which is what Kaepernick likely would have received on a straight extension. Thats really his gamble. 

 

I think its a good deal for both sides though I would not expect many others to make the same kind of deal.

Yeah, I think this a solid deal for both sides. In practical terms, the only way he doesn't ultimately pocket at least $50M (and very likely more than that) is if he sucks, in which case he shouldn't be getting paid that much anyway. Pretty good considering he was under contract for just a couple of bucks (in relative terms).

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