The NBA has disclosed to its 30 general managers a new anti-tanking draft reform termed the "3-2-1 lottery" that includes expanding the lottery to 16 teams, flattened odds and a relegation zone where the bottom three teams will be penalized with fewer lottery balls for the No. 1 pick, starting with the 2027 draft, sources told ESPN on Tuesday.
The league office has held multiple critical meetings with its board of governors, competition committee and 30 general managers over the past few weeks to narrow toward this new singular proposal ahead of the owners having a final vote on May 28, sources said. There could be minor modifications to the proposal, but the key points of the framework have a majority of the support from teams, according to those sources.
The "3-2-1 lottery" proposal, named to represent the number of lottery balls per team, would expand the lottery from 14 to 16 teams. Teams that do not qualify for the playoffs or play-in tournament but stay out of the relegation zone (spots four through 10) would receive three lottery balls each. Teams with a bottom-three record -- the relegation area -- would have just two lottery balls but have a floor of the 12th pick while the rest of the 13 lottery teams could fall as far as the 16th pick.