Compensatory Picks -- Can someone explain the justification?

I guess my real question -- is why is there a system in place for these picks. It seems pointless to me. If you lose a player, too bad -- you shouldn't be rewarded.

Why are compensatory picks awarded? Is there a formula for deciding who gets the picks and which picks they get? I know the rules read:
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.
However, what metrics decide what you're losing versus what you're gaining. At best this system is unreliable.

I guess I feel like the salary cap evens out the playing field. Big money teams have no advantage in free agency over small teams. If you lose a big player due to salary cap restrictions, you shouldn't get an extra pick -- you had the same opportunity as anyone else.

Can someone explain WHY the league has, and needs, compensatory picks. Also, why didn't we get any for losing a pro-bowl LB while gaining some okay starters via FA, but no real studs.

Edit: Link to the article the quote is from.
NFL announces 32 compensatory draft choices to 15 teams | ProFootballTalk (http://profootballtalk.nbcsports.com/2012/03/26/nfl-announces-32-compensatory-draft-choices-to-15-teams/)The justification is because it was collectively bargained. That's the why.

The how is secretive, but to qualify you must have had a greater number of UFAs sign elsewhere than you signed. Then you get picks. Value of the contracts signed matters secondarily, as does playing time for the players you lost. Then some teams just get picks in the 7th round because they had a poor record the year before (in this case, that's why Indy gets #253).

We didn't get picks for Rogers because we got Barry Cofield, Josh Wilson, Stephen Bowen, Keyaron Fox, etc.

According to the value formula, Carlos' 1/$4 million contract didn't outweigh everything else we brought in.

Mel Kiper has been studying the draft for something like 30 years and even he has said on multiple occasions that he has little to no idea how they work.

The Packers get two 4th rounders.
WTF?

The justification is because it was collectively bargained. That's the why.
The how is secretive, but to qualify you must have had a greater number of UFAs sign elsewhere than you signed. Then you get picks. Value of the contracts signed matters secondarily, as does playing time for the players you lost. Then some teams just get picks in the 7th round because they had a poor record the year before (in this case, that's why Indy gets #253).


Listen carefully to what GTripp has to say here. He has cut down to the core of this matter right here...

I think this is how they determine them.
CfGIeNALguE

lol Dirt

The Packers get two 4th rounders.
WTF?

because they let their FAs walk. look at the bottom of the article, they lost like 5 players and signed NONE. so that's why.

and for why the system exists - it gives teams that want to be cheap or get burnt by losing a good player a token to make up for it. I don't really think it's needed, but i assume enough owners like it (the ones that typically avoid big FA sprees) that they won't be crying out to get it removed any time soon.