Why is a lower strength of schedule percentage better than a higher one when determining a playoff spot or a draft pick?
I would expect that a stronger schedule wins out over a weaker one.
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I think you are mistaken about how the Strength of Schedule tiebreaker works.
When ranking teams, there are a series of tiebreakers that are used. Tie breaker number 6 is "Strength of Schedule," and it is indeed the team with the higher Strength of Schedule that is ranked above a team with a lower Strength of Schedule.
I think where you might be getting confused is that when determining draft picks, the teams that are ranked lower end up with a higher spot in the draft. The draft picks are in reverse order of the team rankings. Therefore, when determining the draft pick order, if two teams have identical records and the tiebreaker goes all the way to Strength of Schedule, then the team with the lower Strength of Schedule will be ranked lower, but will end up higher in the draft order.