New NBA Rumors on Updated '3-2-1' Draft Lottery Proposal, Retroactive Streak Guidance

As the NBA prepares for a vote from the board of governors regarding lottery reform, details have emerged about the looming changes.

Per Yahoo Sports' Kevin O'Connor, one new detail in the the "3-2-1" proposal would have the NBA retroactively start the clock on the rule preventing teams from having the No. 1 pick in two consecutive years or a top-five pick in three consecutive years.

The league would be looking to count both 2025 and 2026, even though the policy wouldn't go into effect until 2027.

For example, since the Washington Wizards own the No. 1 pick in the 2026 draft, they would not be eligible to select first overall next year and would automatically drop to No. 2 if they were to win the '27 lottery.

ESPN's Shams Charania previously reported in April that the league disclosed to all 30 team general managers it was moving forward with the 3-2-1 proposal after "multiple critical meetings" with the board of governors, competition committee and GMs.

Details of the proposal would expand the lottery from 14 to 16 teams, with the losers of the No. 7 vs. No. 8 play-in tournament games each getting one lottery ball.

The bottom three teams wouldn't be able to pick lower than 12th. It also includes a provision that would prevent clubs from including protections on picks from 12-15.

One note from O'Connor's report is that the streak applies to the team that the pick is originally attached to:

"The streak attaches to the original team, according to league sources. In other words, if Team A has Team B's pick in the 2027 draft as a result of a trade and that Team B pick lands first, then Team B's own pick in 2028 would not be eligible to land first, whether it's retained by Team B or owned by a different team. But Team A, by virtue of selecting first using Team B's pick in 2027, would still be eligible to pick first in 2028 with its own pick or any other team's pick."

In addition to the Wizards potentially not being able to pick No. 1 next year under the two-year rule, the three-year retroactive rule could impact the Utah Jazz. The Jazz picked fifth in 2025 and own the No. 2 selection this year, so they would not be allowed a top-five pick in 2027.

The NBA board of governors will vote on the proposed lottery reform at a meeting on May 28.