It’s more likely that Ernst & Young messed up again than it is that the NBA draft is fair

The Mavericks’ Draft Luck: A Closer Look at Ernst & Young’s Track Record

When it comes to the NBA draft lottery, the odds can be quite staggering. Take the Dallas Mavericks, for instance, who faced a mere 1.8% chance of securing the coveted first overall pick—essentially a long shot with roughly a 1 in 55 possibility. While achieving this outcome isn’t entirely impossible, it’s certainly unlikely.

This brings us to the role of Ernst & Young (EY), the auditing firm responsible for overseeing the intricacies of the draft lottery. Over the past five years, EY has found itself embroiled in numerous controversies, raising questions about the integrity of their operations.

Here’s a brief recap of some notable incidents involving the firm:

• Wirecard (2020): EY approved financial statements that falsely reported €1.9 billion in cash assets that were non-existent, contributing to one of the largest financial scandals in recent history.

• Luckin Coffee (2020): The firm overlooked a staggering $300 million in fabricated revenue, resulting in significant repercussions for the coffee chain and its investors.

• CPA Ethics Exam Scandal (2022): In a serious breach of trust, EY was caught cheating on ethics examinations for its employees and subsequently misled the SEC about the incident, culminating in a hefty $100 million fine.

• Brooge Energy (2024): Litigation has emerged from investors claiming that EY either failed to notice or chose to ignore clear indicators of inflated revenue, estimated at a troubling 30% to 80%.

• Italy (2024): The offices of EY in Italy faced raids over allegations of bid-rigging linked to European Union contracts, further tarnishing their reputation.

Given this series of events, one must ponder—what seems more plausible? The Dallas Mavericks defying the odds and clinching the #1 draft pick or Ernst & Young inadvertently stepping into another significant scandal? As the draft approaches and speculation rises, it’s evident that the integrity of both the lottery process and the overseeing firm are subjects worthy of scrutiny.