I think you quoted the wrong person.
BTW, here's the language from the CBA:
Quote:
# If a team does not sign its pick in the first two rounds (including the supplemental round between the two), it receives a compensatory selection in the following year's Rule 4 Draft that is one pick after the slot of the player who did not sign.
# If a team does not sign its third-round selection, it receives a compensatory selection in a new supplemental round between the third and fourth rounds in the following year's draft.
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