clock menu more-arrow no yes mobile

Filed under:

Colin Kaepernick took out insurance policy to cover 2017 salary

We break down some of the latest on Colin Kaepernick’s restructured contract.

Editor’s update: USA Today NFL reporter Tom Pelissero is reporting the playing time incentive is 34.4 percent. That is based over 16 games, so he’ll need to surpass that each week for the remaining 11 games.

The San Francisco 49ers and quarterback Colin Kaepernick were able to work out a restructured contract earlier this week that has helped get him back into the starting lineup. The team will deny this played a part, but it’s hard to believe this did not impact the decision to some degree.

The new deal voided the final three years of his contract, turning it into a one-year deal for 2016, with a player option for 2017. The reason it potentially helped get him back into the starting lineup is the fact that it removed an injury guarantee Kaepernick had on his 2017 salary. The quarterback is due $14.5 million if he picks up the player option. It previously was guaranteed for injury, but the restructure removed that.

There were questions about why Kaepernick would remove it, but according to multiple reports, he has been able to cover himself anyway. The reports state that Kaepernick took an insurance policy worth $7.5 million (Rapoport, Schefter). Schefter’s report says it’s a “three-part, half-million dollar policy.” He gets paid if he suffers an injury and is unable to play in 2017. It is believed that Kaepernick paid for it, which means it would pay out tax free, and would not impact the 49ers salary cap next season. $7.5 million is approximately what his $14.5 million 2017 salary would pay out after taxes.

The two reports also confirmed what we learned earlier this week about the $1 million incentive in his contract. It is reported to be if he plays 50 percent of snaps this season. If he remains the starter, he will be able to surpass that.