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

The NBA’s pursuit of an effective anti-tanking strategy took a significant step forward on Tuesday when league officials presented an updated draft lottery reform proposal — deemed the “3-2-1” system — to all 30 teams in a virtual general manager’s meeting.The proposal, which was obtained by The Athletic, aims to create an environment that heavily incentivizes teams at the bottom end of the standings to win their way up the ranks as a way of improving their lottery odds. The lottery would expand from 14 teams to 16 in this system, with lottery balls drawn for all 16 qualifying teams. Here’s what would determine how many balls each team gets, as well as other rules that are part of the pitch. Three balls (8.1 percent chance of landing the No. 1 pick, seven teams in all): The teams that did not qualify for the playoffs or Play-In Tournament but avoided finishing with one of the three worst records. Two balls (5.4 percent chance, seven teams): Teams that finished in the bottom three, and were thus subject to a “draft relegation” provision in which they are penalized by losing one lottery ball (going from three to two). In an attempt to create a floor for how far these teams might fall, the “draft relegated” teams would pick no lower than 12th, whereas all other lottery eligible teams could fall as far as the 16th pick. The ninth and 10th Play-In seeds in each conference would also receive two lottery balls each. One ball (2.7 percent chance, two teams): The losers of the Play-In games between the seventh and eighth seeds in each conference would receive just one lottery ball.