It seems like something like this might also push teams from the NFL/NBA to not tank - because instead of just giving them the 1st pick in the draft, it also drops them into another tier. At the same time, dropping them into another tier instantly increases their competitiveness, which has to make the season much more pleasant for true fans.

I don't know how it would work, and it definitely takes a change in mindset for the US to implement something like this. But I think it's a great idea for many leagues here.