how did the NHL handle it?
Found it: "The loss of the 2004–05 season meant that there were no results on which to base the order of the 2005 entry draft. The league settled on a lottery system in which all teams had a weighted chance at the first pick, expected to be Sidney Crosby. The lottery was tilted so teams with fewer playoff appearances over the last three seasons and fewer number one overall picks over the last four seasons had a better chance of landing higher picks. The complete order was determined by the lottery, and the 2005 draft was conducted in a "snake" style, meaning in even rounds, the draft order was reversed. This system was an attempt to compromise between those who felt all teams should have had an equal chance at the first pick and those who felt only the weaker teams should have been in the running."
So I guess that would prevent Cleveland from getting the #1 pick again. First off, they just had the top pick. Second, they had the best record in 2 of the last 3 seasons.
Would be bad for Boston, though. No top picks for us