I will preface this by saying that, had the Flyers not been the worst team and yet lost out on the top pick, I would not bother to even attempt to find a better method of conducting the Draft Lottery... Also, in this case, it is no major problem in being #2 as opposed to #1. That said:
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I understand the reason behind the lottery... since 'tanking' games to obtain a major player in the draft is a real possibility, and should not be allowed to happen. However, the manner it is currently being done is just flat out wrong, IMHO.
Instead of ranking the teams and then having a weighted ping-pong lottery and moving the winning team up to a maximum of four spots, I suggest that they rank the teams up by the fewest points in the final standings on up... Weigh the lottery balls in conjuntion with the point differential -- while a team may tank games if close to the bottom, chances are that there would be no major amount 'throwing' of games over an entire season; it would not be tolerated by the fans nor anyone else -- Then have a certain amount of points detracted from a team's final total if they win the lottery... In this way a team may still move up to gain the top pick but the better the team, the harder it would be to hop over all the teams worse than they are, to accomplish it.
In the most recent case, Chicago may not have been able to move up enough but Phoenx and LA may well have... In cases where the point differntial is so great, it is just wrong to disregard the great gaps that may be involved between the lower situated teams.
There would, of course, have to be a study to determine the best way to weigh the balls and how many points the winner would have deducted from their season total.
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