A total of 36 compensatory draft selections in the 2021 NFL Draft have been awarded to 17 teams, the NFL has announced.
For the Kansas City Chiefs, that means one compensatory pick each in Round 4 and Round 5.
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.
The compensatory picks will be positioned within the third through sixth rounds based on the value of the compensatory free agents lost.
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. No club may receive more than four compensatory picks in any one year. If a club qualifies for more than four compensatory picks after offsetting each CFA lost by each CFA gained of an equal or higher value, the four highest remaining selections will be awarded to the club.
The Collective Bargaining Agreement limits the number of compensatory selections to the number of clubs then in the League (32). This year, seven clubs, the Atlanta Falcons, Chicago Bears, Indianapolis Colts, Minnesota Vikings, Philadelphia Eagles, Pittsburgh Steelers, and Tampa Bay Buccaneers qualified for a compensatory selection under the net loss formula but will not receive that pick because the final numerical value of the CFA who was lost ranked 33rd or lower among the final numerical values of all compensatory selections. Each of those clubs except Indianapolis will receive compensatory selections for other CFAs lost whose final numerical values ranked within the top 32.
In addition to the 32 compensatory selections awarded under the net loss formula, four special compensatory selections were awarded to four clubs: the San Francisco 49ers, Los Angeles Rams, Baltimore Ravens, and New Orleans Saints under a recent amendment to the League’s Collective Bargaining Agreement, which was agreed upon by the NFL and the NFLPA to promote equal employment opportunities and an inclusive workforce within NFL clubs. This initiative provides that the prior employer-club of a minority employee who has been hired by another club as its head coach or primary football executive (general manager) will receive compensation in the form of a special compensatory draft selection in the third round of each of the next two drafts, or in each of the next three drafts if two minority employees from the employer-club are hired for these positions by another club or clubs.
