New details emerge on how new NBA Draft Lottery format could affect Memphis Grizzlies

New details about the NBA's proposed "3-2-1" lottery format surfaced Friday. Memphis could potentially miss out on a top-5 pick in the 2027 draft under the proposal.

May 14, 2019; Chicago, IL, USA; NBA deputy commissioner Mark Tatum reveals the number two pick for the Memphis Grizzlies during the 2019 NBA Draft Lottery at the Hilton Chicago. Mandatory Credit: Patrick Gorski-Imagn Images | Patrick Gorski-Imagn Images

Yahoo Sports' Kevin O'Connor reported Friday that there is new clarity on a rule in the NBA's "3-2-1" draft lottery proposal.

There is a rule that says no team can have the first overall pick in consecutive drafts or a top-five pick in three straight drafts. GMs had been left wondering whether, if picks are traded, the streak would stay attached to the original team.

The streak attaches to the original team, so this could directly affect Memphis in the 2027 NBA Draft. The Grizzlies will get the most favorable pick of Utah, Minnesota, and Cleveland from the Feb. 2026 Jaren Jackson Jr. trade.

Utah picked fifth in 2025 and has the second pick in 2026. Under the proposed rule, which retroactively dates the streak back to 2025, the Jazz are not eligible to land in the top five in 2027. Since the streak attaches to the original team and not the team holding the pick, Memphis cannot get a top-five pick from Utah in 2027 even though the Grizzlies were operating as if they could receive a top-five pick when it made the Jackson deal.

If Memphis were aware of this clause in the proposal, it is fair to say the deal would have looked different.

O'Connor and The Athletic's Sam Vecenie said it clearly: The Jazz-to-Grizzlies pick is being retroactively devalued because the league decided to start the clock in 2025.

The Jazz made a calculated decision to trade that pick for Jaren Jackson Jr. If the Grizzlies had known that pick would in some way be protected, would Jackson even be on the Jazz now? Feels completely absurd to penalize the Grizzlies for a trade they already made.

— Sam Vecenie (@Sam_Vecenie) May 22, 2026

This is the biggest problem with the proposal as it is currently written. The Grizzlies made a trade under a different set of rules than the one penalizing the team.

The impact on the 2027 draft will depend entirely on where Utah's pick lands. If it falls outside of the top five, then the rule is irrelevant. If it does end up in the top five on lottery day, then Memphis would automatically be moved to the sixth pick regardless of where the ping pong ball lands. For a rebuilding team like the Grizzlies that traded arguably its best player specifically to acquire draft assets, losing a top-five pick is a significant blow.

O'Connor also noted that the league is justifying the rule by saying it prevents a loophole. Without looking back to 2025, a team approaching a streak could trade its pick to a team with no streak history. Attaching the streak to the original team closes that gap.

I would argue that the top-five streak rule in general, is going too far in the first place, which O'Connor also argues for. It is understandable to want to discourage tanking, but restricting teams from three-straight top-five picks entirely is too far, especially when the fourth or fifth overall picks typically are not prized prospects in most drafts.

The owners are scheduled to vote on the proposal on May 28. If it passes as currently written, Memphis would enter the 2027 lottery with no chance to get a top-five pick from Utah.