Under the rules for compensatory draft selections, a team losing more or better compensatory free agents 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 picks may not be traded this year. A rule change approved by clubs in 2015 will permit compensatory draft picks to be traded beginning in 2017.
Compensatory free agents are determined by a formula based on salary, playing time and postseason honors.