Trade hinges on if Broncos, Colin Kaepernick can agree on restructured contract

— -- San Francisco and Denver have the parameters of an agreement in principle on a trade for quarterback  Colin Kaepernick, sources said, but before any deal can be completed, Kaepernick and the Broncos have to agree on a restructured contract. So far, the two sides have not been close.

Kaepernick and the Broncos will continue to talk and try to bridge their contractual differences, sources said. 

Kaepernick is due to make $11.9 million in base salary this season and has a $15.9 million salary cap hit for 2016. The Broncos want a much friendlier cap number and contract and need to see whether they can get it.

Kaepernick and Broncos executive vice president of football operations/general manager John Elway have met at least once, as the San Francisco Chronicle reported, in trying to see if the two sides can work out their differences.

Denver and San Francisco are not expected to have an issue reaching an agreement on trade compensation in a potential deal for Kaepernick, sources said. The compensation is expected to be a mid-round pick.

The real question is whether the Broncos and Kaepernick can work out a restructured deal; the Broncos and 49ers already have the parameters of theirs in place.

Denver, which lost Peyton Manning to retirement and Brock Osweiler to the Houston Texans in free agency, has long been linked to Kaepernick and has reportedly envisioned him competing with the recently acquired Mark Sanchez.