Actually, the argument isn't flawed.
There have been multiple threads on CP about this, detailing the exact math involved. Having a top-3 pick does not significantly improve your odds of winning the Stanley Cup. Roughly 90% of Cup winners are drawn from the 90% of teams that have one, and 10% of winners are drawn from the 10% of teams that don't have one.
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‘You see in Calgary, [Ryan] Huska is no joke. It’s good. He’s really set on a specific model defensively. If you can be reliable, you have the freedom to play offence.’
—Ethan Wyttenbach
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