What are compensatory draft picks in NFL? Explaining reasoning behind them

The NFL compensatory picks were awarded on Thursday, with 16 teams receiving extra picks (37 in total) in this year's NFL Draft. The San Francisco 49ers were the franchise that received the most picks, with seven in total.

Seven extra picks were awarded in the third round, one in the fourth round, 11 in the fifth round, eight in the sixth and 10 in the seventh. The NFC West teams lead the way, with the 49ers, Rams and Cardinals with at least three picks.

No compensatory pick can be awarded in the first two rounds.

Let's analyze why the picks were awarded and how a team can receive them.

Why do NFL teams receive compensatory picks?

There are two ways to get extra picks in the draft and none of them are exactly positive, but they can offset some of the problems.

The first way to get compensated depends on the contracts signed by former players in free agency. Depending on the deals they sign, you can get from a third- to a seventh-round pick. The yearly average is one of the main reasons to award a pick.

The Philadelphia Eagles of 2022 are a good example. They were not awarded any picks in 2023 but they're going to lose many important players from the Super Bowl run. Chauncey Gardner-Johnson, James Bradberry and Isaac Seumalo will certainly sign big deals with their new teams, so they're assured they'll get extra compensatory picks in 2024.

The other way to get extra picks is by losing minority coaches, which is why the 49ers have seven of them. Losing Mike McDaniel and Robert Saleh helped them due to a new rule instituted by the 2020 Collective Bargaining Agreement, which changed the way that teams are awarded extra picks.

Some teams have mastered the art of getting compensatory picks. The Baltimore Ravens are a fine example of an organization that knows when to let a player go because they're going to be compensated by the NFL anyway.

The compensatory picks can also be dealt now, which is a change from the 2020 CBA.

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