I think this is a bargaining move.
Since they will have to bargain with Brees, they will say look we aren't offering more than ____ a year. If you want more, then we go with Rivers with Feely on standby. If you will take it, then we keep you and ship Rivers.
I think San Diego is in a good spot. Great young RB, good young QB situation, great young TE, good line and FB, and a lot of decent younger players on defense. I would get rid of Jammer if I was them if he has decent value. Then they just need a stud WR and nothing but defense players and they will be serious contendor for some time.