A total of 32 compensatory choices in the 2006 NFL Draft have been awarded to 19 teams, the NFL announced. Under terms of the NFL Collective Bargaining Agreement, a team losing more or better compensatory free agents than it acquires in a year is eligible to receive compensatory draft picks.
The number of picks a team receives equals the net loss of compensatory free agents up to a maximum of four. The 32 compensatory choices announced will supplement the 223 choices in the seven rounds of the 2006 NFL Draft (April 29-30). This year, the compensatory picks will be positioned within the third through seventh 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.
Three clubs this year (Buffalo, Seattle and Washington) will receive a compensatory pick even though they did not suffer a net loss of compensatory free agents. Under the formula, the compensatory free agents these teams lost were ranked higher than the ones they signed (by a specified point differential based upon salary and performance).