In Reed's NBA era--NBA teams didn't scout the college ranks for players as thoroughly as they they do today.
The NY Knick's 1st pick the year Willis Reed was drafted (1964) was Jim "Bad News" Barnes (not to be confused with Marvin "Bad News" Barnes who came along later). Reed, from Grambling, was picked #8 in the overall NBA draft. This was after the Knicks had selected the then more highly regarded Jim Barnes, as the #1 overall pick in the draft.
When the coaches saw what Reed brought to the table he earned the nickname "Good News" and proved it by earning the the NBA's rookie of the year award.