Quick Read: How do Compensatory Draft Picks Work?

Information pulled from: Yahoo! Sports, NFL Operations

This week, information dropped that the Lions may be on the way to getting an upgrade on a projected compensatory draft pick. Currently the Lions are expected to add a 5th round compensatory draft pick, but as Carlton Davis’ is now being valued at a higher level in the compensatory formula this could become a 3rd round pick. This is a big deal, as the Lions do not currently hold a 3rd round pick. Add this into their multiple 4ths, and it makes their day two draft holdings look much better. 

One thing I have never understood is how compensatory picks work, and to be honest, it's still a bit confusing. However, I can give you a rough idea of how the NFL works compensatory picks. 

Compensatory picks are awarded based on a formula the NFL has created, and is cemented in the collective bargaining agreement. The NFL can hand out no more than 32 compensatory picks, and each team can receive no more than 4 picks. Compensatory picks can’t be any higher than the third round. They are designed to compensate a team if they have lost truly impactful players without gaining the same types of players back (think net loss versus net gain). While the exact formula doesn’t exist anywhere to be read, that is the nutshell of it. Additionally, certain coaching losses can award a compensatory pick. 

So, in a nutshell: If a team had a net loss of talent, especially high end talent, in a season, they are likely to be awarded compensatory picks. Carlton Davis had a wonderful year last year, and it makes sense that his performance now weighs more heavily on the formula, thus increasing the Lions net loss and improving their draft stock. 

I know, it’s not great, and not super clear, but for some reason the NFL and NFLPA have made the decision to keep this information under wraps. As far as I am concerned, I am simply happy the Lions may have a 3rd round pick. All picks must be awarded prior to the official beginning of the new league year which is March 11, 2026, at 4pm.