If the restricted free agent accepts an offer sheet from a new club, his old club has "right of first refusal," a five-day period in which it may match the offer and retain him, or choose not to match the offer, in which case it may receive one or more draft picks for the upcoming draft from the player's new club.
If a restricted free agent accepts an offer from another club, their current team has "first refusal." Within this period, they can match the offer to retain the player or decline, potentially receiving draft picks from the new team as compensation.