NBA proposes new ‘3-2-1’ draft lottery system, sources say. Here’s how it works

Key Points:

• The NBA introduced a new "3-2-1" draft lottery reform proposal during a virtual general managers' meeting, aiming to reduce tanking by incentivizing lower-ranked teams to compete for better draft odds starting with the 2027 draft.
• The lottery would expand to 16 teams, with varying numbers of lottery balls assigned based on team performance: three balls for seven teams outside the bottom three, two balls for the bottom three teams (who also face a penalty and a minimum pick of 12th), and one ball for two Play-In game losers.
• Additional rules include prohibiting teams from winning the top pick in consecutive years or three consecutive top-five picks, removing protections on picks 12 to 15, and granting the league expanded authority to penalize tanking by adjusting lottery odds or draft positions.
• The proposal, combining elements from three earlier options, has been generally well received by most GMs, though some have voiced concerns about the severity of penalties and lottery ball assignments for certain seeds, with further refinements expected before the May 28 Board of Governors vote.
• NBA Commissioner Adam Silver emphasizes collaboration in this process, involving league executives, general managers, and the competition committee, with the goal of restoring competitive integrity and finalizing the reform proposal soon.