The NBA has a special hybrid contract called a two-way contract. Here’s what it is and how teams can use it to give developing talent a shot in the pros.
The NBA has invested significant effort in the last several seasons improving its developmental pipelines. The NBA’s G-League (formerly known as the D-League) has a more polished feel and serves as an actual minor-league asset for pro-level clubs that utilize it properly.
The NBA also added a team called G-League Ignite which is a one-year development program that has been used as an alternative to the 1-and-done college track for young and pro-ready players.
In addition to these investments in the G-League product, the league has also created contractual mechanisms that teams can use to improve their roster, create competitive advantages, and give unique opportunities for players to latch onto.
One of the most widely-used mechanisms is the two-way contract.
A two-way contract is a contract where a player is primarily a member of the G-League affiliate for the pro-level team, with the option to “call up” the player to the NBA team for up to a certain number of games each year. Previously, the limit was 45 pro-level games per season, but in recent seasons the limit has been increased to 50.
The two-way contract was created ahead of the 2017-18 season. In 2022-23, here are some of the biggest names signed to two-way contracts:
- Jarrett Culver
- Kostas Antetokounmpo
- Ty Jerome
- Scotty Pippen Jr.
- Admiral Schofield
Who is eligible for two-way contracts in the NBA?
The two-way contract in the NBA is designed to be developmental in nature. They’re best for players who are early in their career that teams desire to get playing time but may not be willing to give up high-stakes minutes at the pro level just year.
Only certain players are eligible: Players with fewer than four years of NBA experience.
Two-way contracts do not count toward an NBA team’s roster limit, they are in addition to the 15 players on the team. If a two-way player is converted to a full NBA contract, then they would count toward the roster limit.
How many two-way contracts can NBA teams have?
NBA teams can have up to two two-way contracts, and as previously mentioned those two contracts don’t count toward the roster limit, so there is no advantage to not using the two-way roster slots.
According to CBAFAQ, “A Two-Way contract can be for one or two seasons. The player’s NBA salary is the rookie minimum salary (see question number22), pro-rated per day, for each day he is with the NBA team (which includes days on the Active List for an NBA game, or days he engages in practice, drills, conditioning, workouts or travel with the NBA team).”
A two-way salary for 2022-23 is $86,946.
How many games can a two-way contract player play with NBA team?
When the two-way contract was created in 2017-18, players on such contracts could be with the pro-level club for 45 regular season games. In 2021-22, that limit was increased to 50 games, and it remains in effect for 2022-23. That’s 60.9% of the total games on the team’s schedule that they can bring two-way players up.
Players on two-way contracts are ineligible for the postseason, however, teams can convert two-way contracts by converting them to a full NBA contracts. The last day a team can do this is the last day of the regular season, allowing general managers plenty of time to assess talent, fit, and roster needs going into the postseason.
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