What Brock Purdy's Mega-Deal Means for Broncos QB Bo Nix

Denver Broncos second-year quarterback Bo Nix has to be flying high right now. On Friday, the San Francisco 49ers signed quarterback Brock Purdy to a five-year, $265 million extension, with $165 million guaranteed.

The deal will essentially pay Purdy $53 million per year, putting him in the same ballpark as Miami Dolphins quarterback Tua Tagovailoa, who is the sixth highest-paid player at his postion. From an average-per-year standpoint, Dallas Cowboys quarterback Dak Prescott is the NFL's highest-paid at the position, clocking $60 million APY.

Remember when Patrick Mahomes' 10-year, $450 million contract detonated on the NFL back in 2020? The term of that deal is the only unique aspect of it today, as the starting point for a franchise quarterback circa 2025 is $50 million, or thereabouts.

Meanwhile, Nix enters the second year of the four-year slotted contract the Broncos signed him to last year. As the No. 12 overall pick in the 2024 NFL draft, Nix garnered a four-year, $18.6 million contract.

With an APY of $4.65M, the Broncos are getting Nix for a bargain, relative to what his value would be on the open market. And now Broncos Country can see how having a young quarterback on a cost-controlled contract helps the team from a roster-building perspective.

It gives the Broncos roughly $45M per year to play with on the salary cap to fill other needs and boost crucial positions across the roster. But it won't always be this way. Eventually, the Broncos will have to pay Nix.

Technically, the Broncos will have contractual control over Nix for the next four seasons, counting 2025. As a first-round pick, the fifth-year option is built into his rookie contract, giving the Broncos the prerogative of exercising it following his third NFL season.

However, the value of a fifth-year option at quarterback in 2025 is $38.3M, and it's fully guaranteed, which is why most teams with a young franchise guy will extend him to a multi-year contract, giving the club the added flexibility of structuring the deal in the most cap-beneficial way possible.

So, yes, the Broncos have contractual control over Nix for another four seasons, but following the 2027 campaign, the price will skyrocket, whether that's via a fifth-year option, a franchise tag, or an extension. And each year that passes — heck, each minute that passes — the annual value of a franchise quarterback rises.

The Broncos are in no hurry to pay Nix. He's only entering his second year, after all, and still has much to prove.

But in the wake of his impressive rookie season, where Nix passed for 3,775 yards and 29 touchdowns and won 10 games, the Broncos are confident they've got their guy. Fortunately, the Walton-Penner group is the wealthiest ownership outfit in the NFL, so when Nix's turn at the cash machine comes, there will be no shortages in the Broncos' cash machine, although the team still has to play within the strictures of the NFL salary cap, which also rises each year.

By the time Nix comes up for his second contract, the going rate for a franchise quarterback is likely to be set at a $60M floor. Only the Football Gods know what generational wealth awaits Nix if he can stay healthy, continue to improve each season, and consistently lead the Broncos to playoff contention.

Congrats to Purdy on his new mega-deal. Nix's payday is coming and it's going to be tectonic.