Compensatory Picks are awarded to NFL teams that have lost more "qualifying" free agents than they gained
the previous year. There are a total of 32 addition/compensatory picks that are given at the ends of rounds 3
through 7.
Teams that gain and lose the same number of players but lose higher-valued players vs players gained will
be awarded a pick, but only in the seventh round, after the other compensatory picks. An example would be a
the Indianapolis Colts losing DE-Dwight Freeney in free agency, but acquiring DE-Mark Anderson. Freeney is
a higher-valued free agent/player, therefore the NFL may award the Colts a compensatory pick.
Compensatory picks are awarded each year at the annual NFL meeting, held at the end of March.
Compensatory picks cannot be traded, and the placement of the picks is determined by a proprietary formula
based on the player's salary, playing time, and postseason honors with his new team, with salary being the
primary factor. Example: a team that lost a safety who signed for $1.5 million per year in free agency might get
a 6th-round compensatory pick, while a team that lost a wide receiver who signed for $5 million per year
might receive a 4th-round pick.
If fewer than 32 picks are awarded, the remaining picks are then given to teams in order the original draft
order, essentially creating an eighth round. These would then be considering "supplemental compensatory
picks."
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Draft Huddle
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