NBA Board of Governors approves new Draft Lottery system to address tanking

Key Points:

• The NBA Board of Governors approved a new "3-2-1 Lottery" system for the NBA Draft, effective starting with the 2027 NBA Draft, aimed at reducing incentives for teams to tank and prioritize draft position over winning games.
• The lottery expands from 14 to 16 teams, with teams receiving three, two, or one lottery ball based on playoff qualification and standings, and the three worst teams being "draft relegated" to lose one lottery ball as a penalty.
• The system includes pick floors ensuring relegated teams cannot fall below the No. 12 pick, restrictions preventing teams from having the first pick in consecutive drafts or top-five picks in three consecutive drafts, and bans on top-12 to top-15 protections on newly traded picks.
• The NBA will have increased disciplinary powers to combat tanking, including reducing lottery odds, adjusting draft positions, and imposing fines on teams found to be tanking.
• The 3-2-1 Lottery will govern the 2027-2029 drafts, with draft order rules for 2030 and beyond to be decided by a future Board of Governors vote.