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If you`re a basketball fan, you may have heard the term “two-way contract” thrown around when discussing NBA players. But what exactly does it mean?
A two-way contract is a type of deal that allows NBA teams to have up to two additional players on their rosters beyond the usual 15-man limit. These players are typically signed to a two-way deal from the NBA G League, the NBA`s minor league.
Under a two-way contract, players can spend up to 45 days on an NBA team`s roster, while spending the rest of their time in the G League. During their time in the NBA, they`re paid a prorated portion of the league minimum salary (around $449,000 for the 2020-21 season), while their G League salary is capped at $79,500.
The purpose of two-way contracts is to provide NBA teams with extra roster depth and flexibility, while also giving G League players a chance to showcase their skills at the highest level. Two-way players can be called up to the NBA team at any time, and can earn bonuses for playing in NBA games.
However, there are some restrictions on two-way players. They`re not eligible for the NBA playoffs unless their contract is converted to a standard NBA deal, and they also can`t be traded. Additionally, two-way players don`t count against a team`s salary cap, but their NBA days do count against the team`s total roster days, which can make it challenging for a team to keep them on for an extended period.
Overall, two-way contracts are a valuable tool for NBA teams looking to add depth and flexibility to their rosters. While they may not have the same impact as a star player, two-way players can make a significant contribution and provide a team with the depth it needs to make a playoff run.