To make sure this is fully explained for new owners joining or refreshing those that haven't seen it in action in awhile.
Teams under .300 have long been viewed as teams not trying to win. (aka tanking). The league has taken steps awhile ago to curb teams from losing a ton of games on purpose in order to assure a lottery pick. How you ask?
Any team under .300 at the end of the season will have their #1 pick bumped automatically to the 11th spot in the draft. This will bump others up 1 spot in this instance. If the team under .300 does not have their own #1 then their picks in round 2 and 3 will be bumped to 11th.
Any team under .300 during the season can deal their own picks but the value is locked in at 11th in the round. (Picks 1-3). This stops a team from dealing their own picks for other picks to avoid the penalty or profiting from it. Any team wanting to deal with a team under .300 needs to wait until such time the team comes back to .300 or better if they want the picks true value.
If I make a trade with a team in the off-season then he goes under .300 for the following season, am I penalized? No.
If I deal for the #1 of a team under .300 at the time and then he goes back over .300 to finish the season can I be in the lotto? Yes. However, if the team finishes below .300 the pick WILL get bumped.
How about the above scenario with the offending teams #2 and #3. Same answer.
So a team dealing with an under .300 team needs to be aware of the penalties? YES!
Do trades made after the regular season but before the draft fall under the same rules? Yes.
As a team under .300 with all my picks do all my picks get bumped? No. Only your 1st round pick will get bumped with all remaining rounds falling back to where they would have ended up.