Nathan Sliver here again with sevenfortyseven.com. After a grueling and riveting league-wide conversation on tanking that ended as all league debates end, a lot of hurt feelings and funny troll posts by NOLA and Loco, I got to thinking, 'What does the data say about tanking?' Well, who better to answer that than me.
My first question was simple. How quickly can a team recover from tanking? I took two approaches to the issue. In my first graph I plot the average winning percentage of teams that finished with the worst 10 records in the league for 6 years after their bottom 10 finish. This does not take into account draft position. A tanking team has much less control over this, they only lower their winning percentage to give themselves the best chance at a good draft pick.
I notice a few things with this graph.
1: The teams with the top two picks tend to do significantly better than the rest of the bunch, although the worst record teams tend to tale off after peaking in the fourth year. This suggests that GMs that have had the worst record may only be able to maintain a winning team for a short while.
2: Picks 3-7 all hang together very tightly. They don't improve very much because they aren't bad enough to get the help they need from the draft but they still rely on the draft, thinking that they will get the help they need.
3: Picks 8 and 10 actually get worse. These teams really don't get much help in the draft but they sure seem to be counting on it so they actually have to get worse and get better draft picks before they can get better.
The second graph only looks at teams that go from not being a bottom 10 pick to being a bottom ten pick, meaning that repeat "offenders" don't get recounted. This is valuable because is truly measures what happens to teams that sell considerable assets and how long it takes to recover, regardless of how many times they have to go through the lottery.
As you can see, the lines here are much flatter. The first and second picks still gain a significant advantage but for everyone else growth will be slow. What does this mean? Tanking is high risk high reward. If you can manage to score one of the top two picks, you'll probably be good soon. If you don't manage one of the top two picks, there will probably be ping pong balls with your name on them the next year too.
Now let's move on the the league-wide effects.