According to the Charlotte Observer, the Panthers have signed quarterback Jake Delhomme to a five-year, $42.5 million contract extension through 2014.

The Panthers announced they have agreed to extend the contract of quarterback Jake Delhomme, which secures their long-term commitment to him at the all-important position and also provides some salary-cap relief. Delhomme was in the final year of his contract and was scheduled to count more than $11 million against the cap, but now has a new five-year deal that agent Rick Smith said is worth $42.5 million with $20 million in guarantees. Smith said the contract’s structure was “extremely complicated” but will save the Panthers at least a couple million in 2009 cap space.

Whaa? They created cap space, which was nice, but $8-plus mil a year over the next five years? For Jake Delhomme? Like, for real?

This move essentially tells me that the Panthers are dedicated to Delhomme for at least the next two to three years and probably won’t draft a quarterback high in the next two drafts because they won’t be able to sink that much money into one position. (Especially the quarterback position.)

Delhomme has certainly done more good than bad in Carolina over the years (after all, he did lead them to the Super Bowl), but this is a player that is definitely on the decline. And if his performance in last year’s home playoff loss to the Cardinals is any indication of how his play will be from here on out, the Panthers will learn to regret this decision.