What is a two-way contract in the NBA?

Providing fringe players with an NBA opportunity, while allowing teams to have a larger selection of players available — behold the two-way contract.

Your favorite Laker, Austin Reaves, is a two-way contract graduate and success story. Mac McClung, the latest Slam Dunk Contest champion, is currently on a two-way deal with the Philadelphia 76ers and Delaware Blue Coats.

A two-way contract allows players to suit up for both an NBA team and its NBA G League affiliate. Introduced in 2017, this type of contract has been extremely useful as it allows teams to develop certain players without a full financial or roster commitment.

Who is eligible for a two-way contract?

Only players with less than four years of experience in the NBA can sign a two-way contract. These contracts are designed for young players that are early in their career and have plenty of potential, but may just need more time to develop.

How many two-way contracts can an NBA team have?

Two-way players are often considered the “16th and 17th men” on a roster. Each NBA team, in addition to their 15 normally allocated roster spots, is allowed two two-way contracts per season.

What are the cap implications of a two-way contract?

Only the 15 players on standard contracts count against a team’s salary cap and tax. According to the CBAFAQ, “A Two-Way player is not included in his team’s Team Salary (see question number 13), so teams don’t need cap room or an exception to sign, acquire or convert (see question number 83) a Two-Way contract.

So even though a team still has to pay for their two-way contracts, their salary cap will remain the same. Basically, a team only has to worry about its two-way contract when and if it is converted.

How much does a two-way contract pay?

Two-way players now get a flat rate of 50 percent of the rookie minimum salary.

Prior to the 2021 season, a two-way player’s NBA salary was the rookie minimum salary pro-rated per day, for each day the player spent with the NBA team. This included days on the team’s Active List for an NBA game, or days he engaged in practice, drills, conditioning, workouts or travel with the NBA team.

How many games can a two-way contract player play?

Players on two-way contracts can only play in 50 of their team’s 82 games. Even when not playing, two-way contract players can practice, travel, and sit on the bench for games as an inactive member of the team.

Can a two-way player be converted into a regular NBA player?

A two-way contract can be converted from the start of the July moratorium through the day of the team’s last regular season game.

Can two-way contract players play in the postseason?

Two-way contracts are ineligible for postseason rosters. Nevertheless, as mentioned earlier, a team can convert their two-way player to a full contract as long as the conversion occurs before their final regular season game. In short, a two-way player can only play in the postseason if their two-way contract is no longer in effect.

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