The below is from 2005. They added "dies" in 2011. I believe Sather had to argue that Chery was eligible to be drafted the next year, even though deceased as nothing in the CBA says a person must be living to be selected (seriously)
8.3 Compensatory Draft Selections. (a) In addition to the seven (7) rounds of the Entry Draft, there shall be an additional number of Compensatory Draft Selections not to exceed the number of Clubs to be in the League in the following year. (b) In the event a Club loses its draft rights to an Unsigned Draft Choice drafted in the first round of the Entry Draft (except as a result of failing to tender a required Bona Fide Offer (as defined below)), who is again eligible for the Entry Draft or becomes an Unrestricted Free Agent, a Compensatory Draft Selection shall automatically be granted to that Club, which Compensatory Draft Selection shall be the same numerical choice in the second round in the Entry Draft immediately following the date the Club loses such rights. By way of example, if a Club cannot sign the third pick in the first round, it will receive the third pick in the second round as compensation.
They signed Amirov in April 2021 and the cancer wasn't diagnosed until after an injury in the 21-22 season. If I am Tre I still make the pitch, but I think the comparison to a signed player simply dying in an accident before he comes over is apt.