The assets exchanged in an NFL trade, typically a combination of draft picks, players, and occasionally cash considerations, with value often assessed using draft pick value charts.
Trade compensation refers to the total package of assets exchanged between teams in a trade. The most common form of compensation is draft picks, which serve as the universal currency of NFL transactions. Players can also be included as compensation, though pure player-for-player swaps are relatively rare. The NFL also allows cash considerations of up to $2 million per year per team, though this is uncommon. Draft pick value charts, most notably the Jimmy Johnson chart developed in the 1990s and more modern analytics-driven charts like the Rich Hill chart, help teams assess whether proposed trades are fair. These charts assign point values to each draft position, allowing teams to compare the total value on each side of a trade. However, charts are guidelines, not rules, and teams often deviate based on their own evaluations. Compensation packages have grown increasingly complex over time. Modern trades frequently involve multiple picks across multiple drafts, conditional escalators, pick swaps, and players with varying contract situations. The best GMs find creative ways to structure compensation that meets both teams' needs while managing salary cap implications.
The 2024 Davante Adams trade from the Raiders to the Jets involved a conditional third-round pick that could become a second-rounder based on performance. The relatively low compensation reflected Adams' age (32) and his large remaining contract.
Category: Trades & Transactions. Part of the StickToTheModel NFL Encyclopedia.