For the entire draft weekend, everything is allocated in final-standings order: beds, bathroom slots, first crack at the food, menu choices at dinner. The loser showers last, sleeps on the floor, and eats what remains. No single punishment, just a weekend-long caste system.
Budget note: this one costs nothing but dignity, which makes it a strong pick for leagues that would rather spend the pot on the champion than on the loser's downfall.