NBA reportedly proposes new draft lottery system to address tanking: Here's how it works

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Tanking has been one of the primary stories of the 2025-26 NBA season and the league has spent the past several months searching for solutions. It fined teams like the Utah Jazz and Indiana Pacers for tanking-related offenses, conducted several calls with general managers, batted around multiple concepts, and, according to ESPN's Shams Charania, has now settled on a proposal that would begin with the 2027 draft lottery.

It is called the "3-2-1" proposal, named for the new distribution of lottery balls in the system. The lottery would include a total of 16 teams (up from 14): the 10 teams that miss the postseason entirely, the No. 9 and 10 seeds in both conferences, and the losers of the No. 7 vs. No. 8 Play-In Tournament games.

In this proposal, which will be voted on by league owners at the May 28 Board of Governors meeting, the teams with the three worst records would fall into the so-called "relegation" zone. They would receive only two lottery balls each. The seven remaining teams that miss the postseason entirely would receive three. The No. 9 and No. 10 seeds would receive two, and the loser of the No. 7 vs. No. 8 game would get one. As a tradeoff for receiving fewer lottery balls, the three worst teams in the NBA could pick no lower than No. 12. Everyone else could fall as far as No. 16.

Other provisions included in the proposal, which was recently disclosed to the NBA's 30 general managers, include:

• A "sunset" provision that would force the new system to expire after the 2029 NBA Draft, therefore allowing the league to judge whether or not it is working. The NBA's current collective bargaining agreement runs through the 2029-30 season.