NBA Introduces Draft Changes: 3-2-1 System to Combat "Tanking"

To combat this practice, the NBA is set to reform its draft lottery system. According to reports from journalist Shams Charania, the league has informed general managers of all 30 teams about a new system dubbed the "3-2-1 Lottery," designed to discourage intentional losing.

Slated for implementation starting with the 2027 draft, this system introduces several key changes. The lottery will expand to include 16 teams, the odds for a high pick will be reallocated, and a new "relegation zone" will penalize the three worst-performing teams with reduced chances for the top pick.

In recent weeks, meetings have been held with the Board of Governors, the competition committee, and general managers to refine the proposal. Team owners are expected to vote on the new rules on May 28th. While minor adjustments are possible, sources indicate that the core tenets of the proposal have widespread support among teams.

The name "3-2-1 Lottery" refers to the number of lottery balls teams receive. Instead of the current 14, 16 teams will participate in the lottery. Teams that miss both the playoffs and the play-in tournament, and are not in the "relegation zone," would receive three lottery balls. The three teams with the worst records in the league would fall into the "relegation zone" and receive only two balls. However, they are guaranteed at least the 12th pick in the draft, while the other 13 lottery teams could drop as low as 16th.

Teams finishing 9th and 10th in their respective conferences would receive two balls each, while the losers of the play-in games for the 7th and 8th seeds would get one. Under the new proposal, all 16 teams would have a chance at the first overall pick, a significant shift from the old system where odds were heavily concentrated among the four worst teams.

The proposal also includes several additional restrictions. No team will be able to secure the first overall pick two years in a row, nor can they have three consecutive picks within the top five. Furthermore, teams will no longer be able to protect picks in trades ranging from 12th to 15th overall.

An "expiration clause" is also planned, meaning the new system would be in effect until the 2029 draft, after which the Board of Governors would decide on its extension. Additionally, the league would gain increased disciplinary powers to penalize "tanking," including the possibility of reducing lottery odds or altering draft positions.

NBA Commissioner Adam Silver emphasized in March that addressing the issue of "tanking" is a priority. Officials believe the new system will incentivize teams to compete for wins until the end of the season, as those in the "relegation zone" will strive to escape it, while others will aim to avoid falling into it.