What is draft compensation in NBA? Teams having compensatory picks in 2024 NBA draft explored

Draft compensation has been a hot topic this week leading up to the NBA trade deadline. The deadline has seen several teams execute deals to improve their standings heading into the All-Star break next weekend. Some teams will look to go from play-in contenders to championship hopefuls, while others try to fight their way into the playoffs.

With the hours ticking away, fans await news regarding whether or not their favorite teams will participate in deals. So far, several trades have been finalized ahead of the deadline.

One trade between the OKC Thunder and Charlotte Hornets saw the Thunder acquire Gordon Hayward. Meanwhile, the Hornets acquired Tre Mann, Vasilije Micic, Devis Bertans and draft compensation.

The deal quickly went viral, with fans weighing in on whether or not Hayward will be the piece to help the Thunder make a postseason run. At the same time, many fans questioned what the draft compensation part of the trade meant, given that it was unspecified.

Treating the OKC Thunder-Charlotte Hornets trade as an example, compensation means that the Hornets acquired draft picks. This could mean that the Thunder included a first-round or second-round pick. However, there are some nuances to be aware of.

Here is another example of draft compensation:

Looking further at what draft compensation is in the NBA

Draft compensation is unique to each trade. In some cases, the compensation could be a first-round pick. In other cases, it could be a second-round pick or several picks.

As previously stated, there are some nuances to be aware of regarding compensation being included in trades. For starters, the team sending the pick has the opportunity to protect it.

This section will borrow from the Adrian Wojnarowski tweet indicating the Washington Wizards traded Daniel Gafford to the Dallas Mavericks. The Mavericks traded Richaun Holmes and draft compensation to the Wizards.

While it's unclear what compensation was sent by Dallas, the team could have protected the pick. As stated earlier, draft picks can be protected. So, if a top-three protected pick is traded during the draft lottery, it will be returned to Dallas if it falls within the top three.

At the same time, there is also a possibility that the pick is lottery-protected. So, if the draft lottery sees the team land in the lottery, then the pick would be returned to Dallas.

With this knowledge, analyzing trades that include compensation will be a breeze.