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By Andrew Brandt of SI and MMQB.
Five thoughts on the Kaepernick extension.




1) I think the length of Kaepernick’s rookie contract was a key factor. While the NFL took a sledgehammer to the previous rookie compensation system in the new collective bargaining agreement, Kaepernick was one of the few golden ticket winners. Although the second-round earnings on his rookie deal ($5.1 million over four years) paled in comparison to first round riches, he was not saddled with a team option for a fifth year like first-rounders are—for example, the Panthers’ Cam Newton. That would have given the Niners two more years of contract control, and the lack of such leverage worked to Kaepernick’s benefit.

2) I think the 49ers could have played a heavy hand due to Kaepernick’s highly undervalued existing contract. While all the comparable quarterbacks who received extensions over the past year—Joe Flacco, Aaron Rodgers, Tony Romo, Matt Ryan and Jay Cutler—would have earned double-digit millions the next year absent an extension, Kaepernick would have made approximately $1 million in 2014. With an always-present injury risk, the team could have used his undersized 2014 salary as a hammer here. Based on the reported results, however, they did not.

3) I think Kaepernick showed some admirable loyalty to his agent. It was no secret around the NFL that many of the most powerful agents were circling, anxious to corral one of the top players in the game. With the barbarians at the gate, Kaepernick remained loyal to the agent who helped get him to where he is, Scott Smith of XAM Sports. Too many players leave agents for bigger agents or agencies when their careers advance to another level.

4) I think that, based on their structuring of other veteran contracts, the 49ers are tying significant earnings in the contract to per-game roster bonuses. This feature, which I used in Green Bay and is used by several clubs, allows the player to collect money every week as long as he suits up, while protecting the team if he does not. Using these clauses with Kaepernick, their most important player, would pave the way for their use in upcoming extension talks for players such as Michael Crabtree, Mike Iupati and Aldon Smith.

5) I think that the reports of $110 million or $126 million are just meaningless numbers. As readers of this space know, NFL contracts are not like NBA and MLB contracts, where reported values are real. Even the guarantee is, well, not really all guaranteed. My sense is the reported $61 million guarantee—vaulting Kaepernick to the top of the list in NFL guaranteed money—will be “stair-stepped,” with annual triggers activating different amounts of guaranteed money at different stages of the contract (thus not a “true” guarantee).

Whatever the structure, the Kaepernick deal is striking. With the prospect of making a relatively miniscule amount this season and an uncertain future, he has cashed in to achieve long-term financial security. Somewhere Andrew Luck and Russell Wilson are smiling.