The more money Gold Coast and Greater Western Sydney dangle to poach AFL players, the better the clubs they raid will now be compensated.

The new AFL formula announced on Wednesday means Geelong will get two first round picks if they lose superstar Gary Ablett to the Gold Coast, up from one under the previous model.

The league's original complicated system took into account factors such as past best and fairest votes, draft order a player was selected, current salary and age.

They have now raised the maximum level of compensation, up from one first round pick to two.

And it will be determined on just two categories, a player's age - younger being better - and how much Gold Coast or GWS will pay them.

Both clubs can sign up to 16 uncontracted players from existing teams - Gold Coast at the end of this season and GWS after the following two seasons.

A club receiving the maximum compensation of two first-round picks will receive one in the middle of the first round and the other directly after their existing pick.

The picks can be used any time over the next five years, or traded away.

But if they are used this year or next, they will not come into effect until the end of the first round, so they do not interfere with concession picks for the expansion clubs.

While clubs losing an established superstar such as Ablett will benefit, so will a club losing a gun youngster.

For instance, Richmond would get two first round picks if they lost first-year midfielder Dustin Martin on a big-money offer from GWS next year.

AFL football operations manager Adrian Anderson said it was more the concern over appropriate returns for young players that prompted the revision.

"There were some anomalies under the old formula and most of those anomalies related to younger players being undervalued," Anderson said.

"The reason for that is because the original formula focussed a lot on the previous contract, the historical contract value, rather than looking at what the player is being offered."

AFL talent identification manager Kevin Sheehan and game analysis manager Andrew McKay will review each compensation selection produced by the formula.

If deemed inappropriate, they can change it to a more suitable level, but it must fall into one of five tiers, ranging from two first round picks to one third round choice.

A Geelong spokesman said the Cats believed the new system was fairer for all clubs, but they hoped it would not have to apply to them.

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