Report: Colts were negotiating with Sean Payton, talks broke down

The Indianapolis Colts made a somewhat shocking move Monday night when they gave head coach Chuck Pagano a four-year extension, but it already sounds like they settled for their second — or even third — choice.

Colts beat writer Tom James reports that the team was in talks with Sean Payton and the New Orleans Saints on Monday while also working on the details of Pagano’s extension.

According to an NFL source, the Colts were negotiating with Sean Payton reps while Pagano talks were also happening. Talks broke down.

— Tom James (@TribStarTJames) January 5, 2016

Jason La Canfora of CBSSports.com refuted the report:

There was no contact between the Colts and Sean Payton or his agent, contrary to a report. Irsay's decision had nothing to do with Payton…

— Jason La Canfora (@JasonLaCanfora) January 5, 2016

Payton is under contract with the Saints through 2017, so they could demand draft pick compensation if they let the Super Bowl-winning coach go to another team. It’s unclear if Payton even intends to leave New Orleans, but there has been speculation that he is interested in a high-profile job that just opened up on Monday. Based on all the rumors we have heard, it seems like Payton is the top prize among coaches who are available or could be in the near future.

There has also been speculation that Colts owner Jim Irsay went after Nick Saban, but Saban has made it fairly clear that he is not leaving Alabama.

So, after all that, Pagano gets another shot. In fairness, he led the Colts to an 8-8 record while Andrew Luck was injured most of the season. Indy could do a lot worse.