NEWSLETTER
The NFL Draft: a time of hope, dreams, and… complex formulas? Fear not, football fans! Today, we crack the code on one of the draft’s most mysterious elements: compensatory picks.
What are Compensatory Picks?
Think of them as bonus draft selections awarded to teams who “lost” more than they “gained” in the previous year’s free agency period. Essentially, it’s the league’s way of evening the playing field. While no one is just going to hand you an extra first round pick for losing a linebacker in free agency, teams who see more players depart than sign on are given some bonus picks to help them restock the roster.
How do Compensatory Picks work?
Several factors contribute to a team’s eligibility for comp picks:
Losing key free agents: When talented players walk away in free agency, teams earn points based on their salary, playing time, and postseason accolades.
Net loss: It’s all about the balance. Teams only qualify if they lose more “points” than they gain by signing other free agents. Just because a team lost some free agents in the offseason doesn’t mean they will automatically get compensatory picks. If a team signs a commensurate haul of free agent talent in addition to it’s losses, they will often not qualify.
Where do Comp Picks land in the draft?
To maintain competitive balance, the NFL awards draft picks to teams who lose valuable free agents.
Comp picks are slotted between rounds three and seven, with the value (round) depending on the accumulated points. The formula behind which round the award pick lands in is actually a secret that’s not public knowledge but in general the higher
This system considers a player’s salary, playing time, and even postseason appearances to determine if a player is a “compensatory free agent” or CFA. If a team nets a loss of CFAs after free agency (signing fewer than they lose), they’re compensated with draft picks.
For example, losing three CFAs but signing only two earns a team one pick.
Are the any other ways to acquire a Compensatory Pick?
Yes. To encourage diversity in leadership roles, the NFL implemented a policy in 2020 awarding bonus draft picks to teams who lose minority coaches or executives to other teams. These “diversity picks” bypass the usual limit of 32 compensatory picks and offer valuable third-round selections to teams fostering minority talent.
The duration of the third-round pick reward varies: two years for one hire, three years for two.
For example in the 2024 NFL Draft the San Francisco 49ers will receive two third-round picks for the second of three years for the losses of defensive coordinator DeMeco Ryans (now the head coach in Houston) and director of player personnel Ran Carthon (now the general manager in Tennessee).
Why do Compensatory Picks matter?
These extra picks can be game-changers, offering teams a chance to snag hidden gems or bolster specific positions. For rebuilding teams, they’re a valuable currency to accelerate their climb back to contention.
Draft Day Bonus Tip: Keep an eye on free agency before the draft! Teams often strategize around maximizing their potential comp pick haul, so understanding who’s moving where can give you an edge on draft day predictions.
Now you’re in the know! With this decoding guide, you’ll be analyzing compensatory picks like a seasoned pro, impressing your friends and fellow fans with your NFL draft expertise. Remember, knowledge is power – and on draft day, every edge counts!
