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Quick question: do named unit champions (e.g. the Changeling or Packmaster Skweel) count against your Character limit?
My brother & I have been thinking about the prermutations of the rule since we realised you could technically take Dogs of War Wizard Lords as a Rare choice in any army (other than Brettonia, of course).
We play 7th edition, although I assume the answer would be the same in 6th.

From the Dogs of War army list:

IMPORTANT POINTS TO REMEMBER
The number of characters is the total number of characters allowed in the army including Lords.
The number of Core units is the minimum you must take. The Special and Rare numbers are maximums.

So, at least regarding the Wizard Lords as rare, they would count against your character limits. I do not think this applies to named unit champions. Long Drong's Slayer Pirates, for instance, make no mention that Long Drong counts against your character limit, and I do not see a generic rule to apply here.

Thanks, that's how we were interpretting it too.

If a character is a unit upgrade in the unit listing then his points cost and allocation come from the unit category, not characters.

This mostly applies to Dogs of War, but there were occasionally other units with character upgrades floating about.

However if a character has a mandatory unit listed in the character section, such as Grimgor's Immortuls, then you pay for the character and unit separately and then combine them together obeying both points/selection limits for the character and unit.