Silver Considers Drastic Measures to Combat NBA's Growing Tanking Problem

NBA Commissioner Adam Silver delivered a stark assessment of the league's tanking crisis on Saturday, declaring that deliberate losing has reached unprecedented levels this season and warning that he is prepared to implement radical solutions, including stripping teams of draft picks.

Speaking before the All-Star Saturday events in Inglewood, California, Silver characterized the current situation as "worse this year than we've seen in recent memory," citing the recent fines imposed on the Utah Jazz and Indiana Pacers as evidence of the league's growing frustration with teams openly manipulating their performance.

Market Forces Drive Perverse Incentives

Silver's analysis reflects a clear understanding of how market dynamics have corrupted competitive integrity. "Modern analytics" have made it crystal clear that the league's incentive structure is fundamentally misaligned, creating a system where rational economic actors, teams, find it profitable to lose games deliberately.

This represents a classic case of unintended consequences in regulatory design. The lottery system, originally intended to discourage tanking, has instead created a sophisticated gaming mechanism where teams can calculate the optimal level of failure to maximize their draft position.

Questioning the Foundation of Competition

The commissioner raised a fundamental question about competitive authenticity: "If teams are manipulating their performance in order to get higher draft picks even in a lottery, then the question becomes... are they really the worst-performing teams?"

Silver's observation that "the 30th performing team is not that much measurably worse than the 22nd performing team" highlights how artificial incentives distort natural market outcomes. When teams have economic reasons to underperform, the entire competitive framework becomes suspect.

Time for Structural Reform

After 75 years of the current system, Silver suggested the league must embrace creative destruction and reimagine its fundamental structures. Just as the league continues experimenting with All-Star Game formats, the draft system requires similar innovation.

The commissioner emphasized the tension between short-term team interests and long-term league health, noting the importance of "the whole community coming together and deciding what's in the best interest." This reflects the classic challenge of aligning individual rational behavior with collective welfare.

Broader League Developments

Silver also addressed ongoing investigations into potential salary cap circumvention by the LA Clippers regarding a sponsorship deal with Kawhi Leonard. The investigation, conducted by Wachtell Lipton, involves "thousands of documents, multiple witnesses" and a company in bankruptcy, demonstrating the complexity of modern sports business arrangements.

On expansion, the commissioner indicated the board of governors will discuss the issue in March, with plans to gauge interest from potential cities and ownership groups. Importantly, Silver confirmed no current franchises face relocation, suggesting expansion represents growth rather than redistribution.

The Path Forward

Silver's approach reflects sound economic thinking: identify misaligned incentives, consider all available remedies, and prioritize long-term institutional health over short-term convenience. The threat of removing draft picks represents a serious escalation that could finally provide sufficient deterrent against tanking behavior.

The NBA's challenge mirrors broader questions about how to structure competitive markets when participants have incentives to underperform. Silver's willingness to consider fundamental reform suggests the league understands that preserving competitive integrity requires more than incremental adjustments.