I wish that the system weren't set up in a way that creates such incentive to lose when a team enters rebuilding. I would love to see the draft system change.
But the system IS setup in a way that doesn't provide incentive to lose.
It's called the weighted lottery system. It was setup in 1994 and it works.
It has not really favored teams that lose a lot of games.
Since it was introduced, only a couple of teams that have ended a season with one of the 5 worst records has gone on to win a title - ever. A few teams that have finished within the 10 worst have gone on to eventually win a title - but most have taken over a decade to do so.
- 94-95 None of the 5 worst teams has won a title. The 6th worst team, Detroit won it in 2004. The 8th worst (Miami) and 10th worst (Boston) also won - both also over a decade later.
- 95-96 Again, none of the 5 worst teams has since won a title. Again, the 6th worst team, Dallas, won in 2009. The 9th worst team was Boston.
- 96-97 Finally, 2 winners. The 2nd worst team (Boston) won 11 years later. The 3rd worst team (Spurs) won just 2 years later. The 3 other teams in the bottom 5 still have not won a title. The 6th worst team was Dallas again.
- 97-98 None of the 5 worst teams has since won a title. The 6th worst team was, again, Dallas. The 10th worst team was Boston, again.
- 98-99 Again, none of the 5 worst teams has since won a title. The 7th & 8th worst teams were Dallas and Boston again.
- 99-00 None of the 10 worst teams that year have since won a title.
- 00-01 None of the 5 worst teams that year have since won a title. The 9th worst team, Detroit, won just 3 years later in 2004. The 10th worst team was Boston, again.
- 01-02 Again, none of the 5 worst teams have since won a title. The 10th worst team, Miami, won 4 years later, in 2006.
- 02-03 Nine of the 10 worst teams that season have still not won a title. Miami, the 4th worst, picked Wade at #5 and won, as mentioned, in 2006. Of course, all the rest of their main rotation (Shaq, Mourning, Payton, etc.) was acquired via trade or FA.
- 03-04 Nine of the 10 worst teams that season have still not won a title. The 10th worst was Boston.
- 04-05 Nine of the 10 worst teams that season have still not won a title. The 9th worst (Lakers) won in 2009 & 2010.
- 05-06 Nine of the 10 worst teams that season have still not won a title. The 7th worst was Boston.
- 06-07 Again, 9 of the 10 worst teams that season have still not won a title. The 2nd worse record was Boston, who finally won the next season (2008)!
- 07-08 Again, 9 of the 10 worst teams that season have still not won a title. The WORST team - the blatantly tanking Heat did win again, in 2012 & 2013. But the pick they got (Beasely at #2) had nothing to do with it. He was a bust.
- 08-09 None of the 10 worst teams have since won a title.
- 09-10 None of the 10 worst teams have since won a title. The 10th worst, the Pacers, do look like a contender for 2014.
- 10-11 None of the 10 worst teams have since won a title.
- 11-12 None of the 10 worst teams have since won a title. Recent former champion Detroit found themselves back in the bottom 10 as the 9th worst team.
- 12-13 None of the 10 worse teams have since won a title. Detroit only recent former champ, in at 8th worst.
When you look at this, only three teams (two franchises) have managed to have bottom-5 records and turn around and win the title within 5 years. And both times the circumstances were nuanced.
The 1997 Spurs were really just an injured team that was otherwise a consistent 50+ game winner the prior few seasons and got Robinson back healthy the next season. So they were adding Duncan to an already powerful roster.
The 2006 Heat did get a great season out of Wade (drafted in 2003), but he was surrounded by a powerful cast of stars (Shaq, etc.) acquired via trade and free agency.
The 2012 & 2013 Heat won because they again acquired a powerful cast (Lebron, etc.) to put around Wade.
The 2003 draft is of course, very notable because like this up-coming 2014 draft, it was hyped up to be 'loaded' with "can't miss" young superstars. And it was, indeed loaded: Lebron, Carmelo, Bosh, Wade, etc.
But only two of the guys taken in that draft has won the title on the team that drafted him. One of those two was Wade. One of them was Darko, who sat on the bench while Detroit won (Detroit had acquired that pick in trade). And two of the others (Lebron & Bosh) only won it after combining with Wade on that same Miami team.
Expanding beyond just teams that have sunk into the bottom 5, of the teams that have sunk to having one of the 10 worst records, only Detroit, Boston and Dallas have managed to climb back to the top. And in each case it took a LOONG time after first sinking down there to get back to the surface.
It is definitely true that most title teams have top draft talent on them. But most of that talent has ended up on those teams via trade or free agency. Not because those title teams drafted them.
Rebuilding through the draft is a crap shoot. It is a game better played with other people's money -- i.e., to have other team's draft picks when THEY suck.