ENGLEWOOD, Colo. -- Denver Broncos coach Sean Payton said the teams that have passed over Shedeur Sanders in the NFL draft should "beware" because the former Colorado star would use the snub as motivation in a successful NFL career.

Payton was asked Friday night, after the completion of the third round, why Sanders, who set an FBS record for career completion percentage in his two seasons at Colorado (71.8%) as he threw for 4,134 yards and 37 touchdowns this past season, was not among the first 102 selections of the draft.

Payton has known Sanders since the young quarterback was in junior high school and was among those who attended Colorado's pro day earlier this month -- an event Colorado coach Deion Sanders, Shedeur's father, had called the "We Ain't Hard to Find Showcase."

The following day, Deion Sanders posted a photo of himself next to a smiling Payton to his 5.3 million followers on Instagram with the caption "all smiles."

"We sat there, I watched right behind him throwing ... he had an outstanding pro day," Payton said Friday. "... I think we all are surprised, and yet the talent -- holy cow, if you're a team that needs a quarterback."

Payton has had a long relationship with Deion Sanders and briefly had a home in the Dallas area, where the Sanders also had lived.

"I saw [Shedeur] when he was in junior high, and then I saw him in high school and then I saw him when he was a sophomore in high school when they were on their way to Florida," Payton said. "He's going to, like there'll be this chip on his shoulder, and beware because this guy is going to play in this league."

Five quarterbacks were selected in the first three rounds of the draft -- Miami's Cam Ward (No. 1) and Ole Miss' Jaxson Dart (No. 25) on Thursday and then Louisville's Tyler Shough (No. 40), Alabama's Jalen Milroe (No. 92) and Oregon's Dillon Gabriel (No. 94) on Friday.

New England Patriots executive vice president of player personnel Eliot Wolf shared Payton's surprise that Sanders was still available.

"It's surprising. We evaluated him," Wolf said. "I had the opportunity to watch him play against Oklahoma State this year. ... It was interesting to see that he's still available, and I'm sure there's going to be a fit for him tomorrow."

Dallas Cowboys owner Jerry Jones, who also has a relationship with Deion dating to the Hall of Fame cornerback's playing days, praised Shedeur's character.

"I watched two or three ballgames with [Shedeur]," Jones said. "So, with my knowledge, I know where the character is there and, boy, it is great character. It is an unbelievable competitive winning character for sports. OK? And so I can tell you that.

"I don't know how many scouts have visited with me about the character of the Sanders group, but they should because it is absolutely up with the very best there's ever been in sport."

Cleveland Browns general manager Andrew Berry, who selected Gabriel ahead of Sanders at No. 94, said Sanders was nonetheless impressive during the predraft process.

"The time that we spent with Shedeur and what he's done throughout his college career is impressive," Berry said. "He's an impressive young man. He's a really good quarterback. ... I would also say this: There are four more rounds in the draft. And then maybe lastly is: It's less about where you get picked than what you do after you get picked. That's the most important thing."

Sanders was rated as the No. 5 draft prospect by ESPN's Mel Kiper Jr. entering Thursday's first round. Payton referenced last year as an example of the volatility of the draft, when the Broncos used the No. 12 selection to make Bo Nix the sixth quarterback selected in the first round.

Payton said the team had a "plan B" if it couldn't get Nix.

"But I think it's hard for any of us to explain what other people are looking for. We focus on what we're looking for," Payton said. "... It's surprising [Sanders is still available]."

ESPN's Todd Archer and Mike Reiss contributed to this report.