RFA Compensation

$994,433 or below

None

$994,434 to $1,506,716

3rd round pick

$1,506,717 to $3,013,434

2nd round pick

$3,013,435 to $4,520,150

1st and 3rd round pick

$4,520,151 to $6,026,867

1st, 2nd, and 3rd round pick

$6,026,868 to $7,533,584

Two 1st's, one 2nd, one 3rd round pick

$7,533,585

Four 1st round picks

Example: A team signs a RFA to an offer sheet which calls for salaries of $4 million in Years 1 and 2, and $5 million in Years 3 to 5. The average amount for compensation purposes is $4.6 million ($23 million divided by 5 years) - so the compensation required in 2012-13 would be a 1st, 2nd, and 3rd round pick.

MISCELLANEOUS
-- The numbers in the table above change at the same rate as the change in the Average League Salary.
-- Teams must use their own draft picks for the purpose of compensation, including picks that were traded and later reacquired. They cannot use draft picks acquired from other teams (which were not originally theirs) to offer as compensation.
-- A team can have multiple offer sheets active, provided it has the necessary draft picks available to offer as compensation.

-- From Article 10.4,
-- Clubs owing one (1) draft selection must have it available in the next draft. Pick must be team's own pick.
-- Clubs owing two (2) draft selections in different rounds must have them available in the next draft. Picks must be team's own picks.
-- Clubs owing three (3) draft selections in different rounds must have them available in the next draft. Picks must be team's own picks.
-- Clubs owing two (2) draft selections in the same round, must have them available in the next draft. One of them MUST be the team's own pick.
-- Clubs owing three (3) draft selections in the same round must have them available in the next two (2) drafts. Two of them MUST be the team's own picks.
-- Clubs owing four (4) draft selections in the same round must have them available in the next two (2) drafts. Two of them MUST be the team's own picks.

When a Club owes two (2) or more draft selections in the same round, the signing Club does not elect the years in which such selections shall be awarded to the Prior Club; rather, the selections next available will be transferred to the Prior Club (i.e., a Club that owes two (2) selections has them available in the next two (2) drafts – that is when they are transferred).