What is a two-way contract in the NBA?

Los Angeles Lakers v Phoenix Suns
Los Angeles Lakers vs Phoenix Suns

Many basketball players dream of playing in the NBA. However, not everyone can be considered talented enough to play in the big league. Many have tried and failed over the years. It's a league where the best players across the globe compete against each other. However, at times, there are a few who get overlooked and miss out on the opportunity to showcase their skills.

Fortunately, the association came up with a solution in 2017. It decided to initiate a two-way contract, a deal that allow players who went undrafted the opportunity to play with NBA teams. Additionally, players under this special contract can also play for the team's G League affiliate throughout the season. That's not a bad gig for players trying to prove themselves in the league.


More in-depth explanation of NBA two-way contract

Milwaukee Bucks vs Chicago Bulls
Milwaukee Bucks vs Chicago Bulls

Initially, two-way players were allowed to play 45 days a season with their team. However, they were restricted from participating in any postseason game. The circumstances changed when the league allowed two-way players to play in the 2020 playoffs as a result of the COVID-19 pandemic.

After the NBA bubble concluded, the association decided to award two-way players more playing time on the main roster. As of the 2020-21 season, their number of games has increased to 50 per season. To add icing on the cake, two-way players have had an increase in salary from $81,995 to $449,155.

The association declared: "“For the 2021-22 season, each two-way player will be paid a flat salary equal to 50% of the minimum player salary applicable to a player with zero years of service."

It continued:

"A player under a two-way contract will be permitted to be on the NBA team’s active list for no more than 50 games during the regular season, with no limit on practices, workouts or other activities with the NBA team.
In addition, there will be no deadline for signing two-way contracts with respect to the 2021-22 season, a change from the rule in the Collective Bargaining Agreement that prohibits teams from signing a player to a two-way contract after Jan. 15 of any season.”

Two-way contracts in the 2023-24 NBA season

Cleveland Cavaliers v Atlanta Hawks
Cleveland Cavaliers v Atlanta Hawks

A two-way contract is a contract that allows teams to sign and keep developing players on their roster while allowing them to play in the NBA G league. Although there are limitations on the maximum number of games a player signed on a two-way contract can play in the NBA, there are no such restrictions for G league games.

The NBA's latest Collective Bargaining Agreement has expanded on two-way contracts and made some changes. Here are the main points explored in the CBA:

1. Teams can keep a maximum of three players under a two-way contract on their roster.

2. Players on a two-way contract will be guaranteed 50% of a rookie minimum, which comes to about $559,782. Which is a massive bump from the previous CBA.

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