They look like a bottom 6 team (though that doesn't mean a whole lot where the pick is concerned), but there are probably more than 6 teams that could somewhat realistically end up worse than Memphis (and again that doesn't mean a whole lot where the pick is concerned).
Right now though I think they are the worst team in the West on paper. I think the Hornets are the worst team in the East (right there with the Cavs) and they might even be better than the Grizzlies on paper. That said, Morant could be a monster, Jackson could make a huge leap, and other teams could not perform like expected and end up worse then them.