The NFL awarded 36 compensatory picks to 17 teams in Rounds 3-7 based on a net loss of free agents last year. Under the system, clubs that suffer a net loss of compensatory free agents during the prior free-agent signing period are eligible to receive a corresponding number of compensatory selections in the following year's draft, up to a maximum of four.
The level of compensation that teams receive for free agents lost is based on a weighted combination of the player's yearly compensation, postseason honors and playing time.
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