NBA Two-Way Contract: What It Is and How It Works
What Does Two-Way Contract Mean? Let’s Discover All the Details About Another Common Term in the NBA Market
In our Complete Guide to the NBA Market, we discussed the topic of the Two-Way Contract, which we will explore in detail in this article.
What is the Two-Way Contract?
The Two-Way Contract is part of a provision in the 2017 new collective bargaining agreement. It allows teams to sign two additional players, beyond the 15 on the roster, for a maximum of 45 days per season. The remaining part of the contract is honored in the G-League.
Along with the 10-Day Contract, it is one of the most commonly used contract options by NBA teams to avoid long-term commitments.
How does the Two-Way Contract work?
The Two-Way Contract essentially allows teams to have two extra players on the roster with minimal cost, which does not significantly impact the Salary Cap. Generally, this type of contract is offered to undrafted players that the franchise wants to keep ready to step in if needed.
When confirmation in the roster does not occur, the players in question are sent to the G-League, the NBA’s developmental league. The typical salary is around $75,000, with a maximum of $200,000 if all 45 trial days are spent with the main team.
Even our Nico Mannion used this type of contract at the start of the 2021 season, before playing some games in the G-League and being recalled by the Golden State Warriors.