To qualify for compensatory picks, teams must end up with more or better qualifying free agents lost than gained in a particular year.

Why do NFL teams get compensatory draft picks?

Per the league, compensatory picks are awarded to a team losing more or better compensatory free agents than it acquires in the previous year. ... Compensatory free agents are determined by a formula based on salary, playing time and postseason honors. The NFL management council developed the formula.

How many compensatory picks can a team get?

In addition to the 32 selections in each of the seven rounds, a total of 32 compensatory picks are awarded to teams based on the players they lost and gained in free agency.