It has become obvious over the last few years that in many cases, teams are factoring compensatory picks in the next season’s draft into the roster-building process. Teams will make mid-year additions or sign players to one-year deals, understanding that the moves could turn into future compensatory picks. Pay them now and receive a bonus pick later.
So, how do compensatory picks work?
The number of compensatory picks allotted each year is limited to the number of teams in the league (32), per the collective bargaining agreement. However, compensatory picks are not divided up equally among the teams, and no team can receive more than four compensatory picks in a single year. Teams that end up with more qualifying free agents lost than gained in a particular year are eligible to receive compensatory selections. A team that lost as many qualifying free agents as it gained might be eligible to receive a Round 7 compensatory pick, based on the value of the qualifying free agents it lost versus the value of the qualifying free agents it gained.
Teams are awarded compensatory draft picks between Rounds 3 and 7 based on a league formula that takes into account a player’s average salary per year (APY), snap count and postseason awards. While there is an expected level of compensation for a player based on the amount he has signed for, his playing time (or lack thereof) in the upcoming season could alter the expectation.
In November of 2020, the NFL announced it would award two third-round selections (one each in consecutive years) to any team who had a minority coach or executive hired as head coach or general manager by another NFL club (teams that lost employees to a head coach and general manager position would receive three). Those selections come at the back end of the compensatory picks awarded in the third round. In 2025, the Lions will receive the second of two picks for having former defensive coordinator Aaron Glenn (now the Jets head coach) hired away this year.
The compensatory picks for the 2026 NFL Draft won’t be determined by the NFL Management Council’s formula until after the 2025 season is over, but in this post, I’ll attempt to project who will be receiving compensatory picks next year and the round in which those picks could fall.
Keep in mind: Players need to have been signed as unrestricted free agents before April 28 to qualify for the compensatory-pick formula. Players who were released by their previous team are not eligible for the formula, so they’re not included in the key additions here. Note also that players are presented in order of descending APY, according to Over the Cap.
