How NFL awards compensatory picks and why 49ers, Rams have 5 extra selections

The 2024 NFL Draft is here, and 14 teams received additional picks beyond the standard allotment when the league awarded 34 compensatory draft picks in early March.

Compensatory picks are awarded to teams based on the number of compensatory free agents that leave the team and are awarded on top of the seven picks (one in each round) NFL teams are allocated.

“Under the rules for compensatory draft selections, a team losing more or better compensatory free agents (“CFA”) than it acquires in the previous year is eligible to receive compensatory draft picks,” reads the NFL policy.

“Compensatory free agents are determined by a formula based on salary, playing time and postseason honors. The formula was developed by the NFL Management Council. Not every free agent lost or signed by a club is covered by this formula. Clubs that suffer a net loss of CFAs during the prior free agent signing period are eligible to receive a corresponding number of compensatory selections.”

In addition, the formula factors in the value of the free agents lost.

Per the league policy, no team may receive more than four compensatory picks in a single season, however Special Compensatory Selections are awarded to teams as a result of having a minority employee hired away by another club as a head coach or general manager.

The Rams and 49ers are the only teams to receive those special picks this year, giving them five extra selections thanks to the four compensatory picks awarded to each team. The Eagles were the other team to receive the maximum four compensatory picks.

Since 1994, when the picks were first given, the Baltimore Ravens have received the most in the league, having been awarded 56 selections.