4 Big Takeaways from Broncos Extending Pat Surtain II When They Did

There is a lot more to the Patrick Surtain II extension than first meets the eye.

August 19, 2023; Santa Clara, California, USA; Denver Broncos cornerback Pat Surtain II (2) warms up before the game against the San Francisco 49ers at Levi's Stadium. / Kyle Terada-Imagn Images

In his three seasons with the Denver Broncos, Patrick Surtain II has established himself as a premier cornerback in the league. As he enters his age-24 season, Surtain has become the best player on the team and one of its most important franchise building blocks.

Surtain will now be paid accordingly, with a four-year, $96 million extension, including $77M guaranteed — becoming the second member of the Broncos' 2021 draft class to get his extension.

The record-breaking extension rocked the NFL news wire and got Broncos fans excited. But what are the key takeaways? Let's dive in.

Apt Timing

Sep 8, 2024; Seattle, Washington, USA; Denver Broncos quarterback Bo Nix (10, second from left) poses for a photo during pregame warmups against the Seattle Seahawks at Lumen Field. / Joe Nicholson-Imagn Images

It may seem that the only significant surprise about Surtain’s extension was its timing, coming just before the start of the season and less than two weeks after Atlanta Falcons cornerback A.J. Terrell signed his four-year, $81M extension but before the likes of Sauce Gardner and Derek Stingley. Moreover, heading into Year 4 and still having the fifth-year option to come, Surtain could have easily played out another season to increase his leverage to get an even bigger contract.

Had the Broncos waited out until after the season, Gardner is the next in line, and ultimately with contracts, a lot comes down to when players are paid, in addition to their overall talent. It figures that the New York Jets and the Broncos could have waited it out, with the one being paid last receiving the most for their overall body of work in the NFL. 

Under the Walter-Penner ownership group, the Broncos have an excellent ability to exploit the use of the signing bonus and to maximize the pro-rated portion to level out the cap hits. With the fifth-year option and another four years on that, a hefty signing bonus would likely be incorporated in the Surtain extension and be pro-rated over the maximum five years. 

The Surtain extension is one of the moves needed to keep the roster competitive as the Broncos navigate the start of the Bo Nix era. For one, the Broncos are still contending with the record dead cap hit of Russell Wilson’s contract and will do so again in 2025, even as a myriad of moves have been made to free up cap space.

The biggest benefit of a quarterback on a rookie deal is the aspect of unpaid production, and if Nix performs at a reasonable level, there is more scope and reason to keep franchise building blocks around. As painful as absorbing Wilson's dead cap hit, the Broncos extending core talent is the sweeter fruit, to which GM George Paton and head coach Sean Payton can keep adding external talent to improve the roster further. 

Unpaid Production & CB Contract Differential

Feb 6, 2023; Englewood, CO, USA; General manager George Paton speaks during a press conference at the UCHealth Training Center. / Ron Chenoy-Imagn Images

The Broncos are not in a situation with their roster where they can afford to let the talent that they have at premium positions leave, and the modus operandi of the offseason is one of team control. On cutdown day, it was no coincidence that the Broncos prioritized younger players on rookie deals and with more years remaining on their contracts.

In 2025, the Broncos have a full complement of draft resources, which can help mitigate a relative lack of cap space, once other contract situations are considered. As they build a competitive roster for the Nix era, the aspect of unpaid production is of vital importance for the Broncos, especially with $76M in dead cap this season.

The Broncos extending Surtain affords them more certainty, having locked up a franchise cornerstone, but it also affords them more flexibility when it comes to medium term as well because of different approaches that they can take in upcoming drafts. One way Denver can go is receiver.

Thus, it's important to consider the cornerback deals against the wide receiver market. This offseason, the likes of Justin Jefferson, CeeDee Lamb, and Brandon Aiyuk received astronomical extensions of $30M-plus APY.

This APY is roughly equivalent to the entire four-year rookie contract of the No. 6 overall pick in 2024. With more polished receivers entering the league and producing earlier in their careers, they increasingly have higher floors and ceilings, which requires even more money when it's time for them to be paid.

However, a first-round receiver who performs well has more unpaid production ability than a first-round cornerback who does the same. Therefore, it makes more sense for teams to invest premium picks in the draft in receivers to see them through one contract.

However, it does become more difficult to justify second contracts unless that particular receiver is elite. With there being less of a differential in cost, it makes more sense for teams to prioritize second contracts for cornerbacks, given the direction of the NFL. 

As receiver contracts go up, it figures that those who cover them must also see their contract go up, too. In that sense, while Surtain became the highest-paid defensive back in the NFL’s history (for a time, anyway), there's still a differential of around $6M per year compared to the top receivers that can be invested elsewhere with the roster construction. 

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A Garett Bolles Move in the Cards?

Sep 26, 2021; Denver, Colorado, USA; Denver Broncos offensive tackle Garett Bolles (72) reacts after the game against the New York Jets at Empower Field at Mile High. / Isaiah J. Downing-Imagn Images

And while the Broncos can't re-sign everyone, one player for whom the Surtain extension could be good news figures to be the left tackle, Bolles. Of the contracts on the roster, Bolles’ is the one where the Broncos have the most flexibility to restructure to get cap-compliant, as they will need some flexibility for in-season roster moves.

Bolles' play is such that if given a multi-year extension, his contract could dove-tail nicely with that of Surtain, Quinn Meinerz, and Nix. Such a contract would need to reduce his $20M cap hit in 2024, utilizing a relatively high signing bonus and a low base salary.

It could also incorporate void years, where the specter of Wilson’s dead cap is far in the mirror, to maximize the proration of that signing bonus. Such an extension would open up the Broncos’ approach in the draft as well, further adding to the talent around Nix.  

And just like the Surtain extension, the move would allow the Broncos more certainty on one particular side of the ball, allowing them to make future moves with more confidence given a known floor.

Good for the Locker Room

Aug 25, 2024; Denver, Colorado, USA; Members of the Denver Broncos offense huddle before the game against the Arizona Cardinals at Empower Field at Mile High. / Ron Chenoy-Imagn Images

The roll-call of Broncos’ first-round picks since 2013 makes for ghastly reading. Only Bolles and now Surtain have received second contracts with the Broncos. Bradley Chubb, Noah Fant, and Jerry Jeudy have been traded.

At least Bradley Roby played out his fifth-year option and contributed to a Super Bowl, as did Sylvester Williams and Shane Ray (technically), while Paxton Lynch was released before his third NFL season. The Broncos also have had a significant issue getting players to their second contract, which shows the dearth of talent on the roster acquired in the draft in terms of quality, depth, and key difference-makers. The culmination of all these first-round failures would not have been a positive message to the locker room. 

Is it a coincidence the Broncos named Surtain one of their team captains on the day he signed a record extension? Of course not.

Surtain is held in high esteem by his teammates and is viewed as a foundational, franchise piece. The spark plug of the defense.

The message that it sends to the locker room is much more positive. Extending Surtain is a move that does right by him and the Broncos. 

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