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The draft for the National Football League (NFL) now includes 32 compensatory draft picks awarded to teams that lost value in free agency prior to the draft. These picks are awarded at the ends of rounds 3-7 of the draft.

How is this value calculated in order to determine what teams get these picks, as well as where in the draft these picks fall?

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The NFL states:

The compensatory picks [are] 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.

These compensatory picks are placed after a given round (3-7). If 32 picks are not awarded using this "formula," it will be added onto the end of the draft based on draft order as if an "eighth round" had begun (only seven rounds are used, picks that fall into this category are added on to the seventh round).

For the 2012 NFL Draft, one compensatory pick took place in the third round (Round 3, Pick 33 ... Pick 95 overall), eight in the fourth round (Round 4, Picks 33-40 ... Picks 128-135 overall), three in the fifth round (Round 5, Picks 33-35 ... Picks 168-170 overall), six in the sixth round (Round 6, Picks 33-38 ... Picks 202-207 overall), and 14 in the seventh round (Round 7, Picks 33-46 ... Picks 240-253 overall).

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Do we have any knowledge of that formula? Specifically, how do they quantify this value? – SocioMatt Jan 3 '13 at 19:39
Looking...nothing on this formula other than the fact it was produced by the NFL Management Council. – ᴍᴀsᴛᴇʀᴍɪɴᴅ_ᴇᴅ Jan 3 '13 at 19:40
Just like QBR. Fantastic. – SocioMatt Jan 3 '13 at 19:42

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