For this example let's use our current restricted free agent, Chris Carr.
I've read some rumblings around the "Net" and here is the Carr situation in a nutshell.
February was decision time for all NFL teams. They had to decide what level of offer they would extend to all of their restricted free agents.
Chris Carr was offered a "low tender", which means that any team who signs him would have to fork over a draft pick that is equal to the round he was drafted in.
The problem here is that Carr was never drafted, so there would be NO compensation.
Here is a list of the tender amounts for 2008:
Low -- $927,000 (compensation would be round in which player entered the NFL)
Second round -- $1.41 million
First round -- $2.01 million
First & third round -- $2.56 million
You can see that there aren't many restricted free agents that switch teams, but, restricted free agents in Chris Carr's category, Undrafted Low Tendered, would make sense to many teams. IF they exhist.
One that is interesting to me is Rashied Davis of Chicago. he was undrafted and was offered a LOW tender as well.
He is a former San Jose State player and I'm sure he'd love a chance to compete for a spot in Oakland as he was replaced in the slot last year by Devin Hester.
I thought that he was starting to come into his own in 2006, and got completely buried on a terrible Bears team last year
In order to sign Carr or Davis, the signing team would have to sign the player to an offer sheet and then wait 7 days for the host team to match the offer. If no offer comes, then the team who signed the player would have him without giving up compensation.
Another Raider that falls into this category is Isaiah Ekejiuba and I don't think anyone is willing to pay him unless he plays a full season and somehow breaks into the starting linebacking core.
I hope this helps clear up any confusion on RFA's.