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Now that the NFL Draft has entered its second day, teams can begin selecting players with their compensatory picks.
This year's draft will have 257 selections; however, 34 of those picks are compensatory.
Every football fan should already be aware that there are seven rounds in the NFL Draft. Ever ponder why certain clubs receive compensatory picks and the mechanism behind those selections? Now let's look into that.
What are compensatory picks in the NFL?
Compensatory picks are essentially extra draft spots awarded to NFL teams whose players have left in free agency in greater numbers. These extra selections enable teams that have experienced significant losses in free agency to add players to their rosters and maintain the league's competitive parity.
NFL teams have found gems in the draft with compensatory picks in the past. Some of those players include Tom Brady, Brian Dawkins, Larry Allen, Dak Prescott, Aaron Jones, and so much more.
It should be noted that teams can also receive a "special compensatory pick" in the event that they lose an executive, minority coach, or assistant coach to a head coach or general manager post at another team. The goal of awarding these extra special compensatory draft selections is to provide equitable employment opportunities.
The NFL implemented compensatory picks in 1994, and other leagues including the NHL and MLB have since adopted the same concept.
How do compensatory picks work?
NFL teams receive compensatory picks in the third through seventh rounds of the draft, depending on the worth of the lost compensatory free agents.
A club that loses more or better compensatory free agents—also known as CFAs—than it gained the previous season is qualified to receive compensatory draft picks under the terms of the NFL Collective Bargaining Agreement.
Compensatory picks are determined by taking into account a player's playing time, individual honors, and earnings (base salaries, signing incentives, performance and salary escalators, etc.). The league then sends out the compensatory picks in accordance with the point value they receive and the quantity of CFAs a team has signed or lost.
Although the formula's precise details are mostly kept under wraps, we do know that it is one of the few methods the league uses to maintain some kind of competitive balance.
