Explained NBA Two-Way and Exhibit 10 contract meaning, rules, value and salary

Have a look at what is a NBA Two-Way and Exhibit 10 contract, the rules, salary and meaning explained

At the 2023 NBA Draft on Thursday night, 58 prospect basketball players heard their names called, fulfilling a lifelong dream. But for many other talented young athletes who weren’t selected, the journey is far from over.

Explained NBA Two-Way and Exhibit 10 contract meaning, rules, value, salary

As soon as the draft was over, NBA teams began rushing to sign the top undrafted free agents. The Miami Heat, who finished second in this year’s Finals, had seven undrafted free agents on their roster. It’s an important step in the offseason process that might pay handsomely for teams who make savvy signing decisions.

The Two-Way and Exhibit 10 contracts are the two options open to undrafted free agents. Here is all the information you need regarding the many alternatives available to teams looking to sign undrafted players.

What is a Two-Way contract?

NBA players on two-way contracts can suit up for both their NBA team and their NBA G League affiliate. Each team is only allowed to have two players participating in Two-Way trades at once.

Several rules are relevant to this form of contract. To begin with, only those who have up to three years of NBA experience are permitted. Only 50 games can be played for an NBA franchise by a player on a Two-Way contract. If the NBA team they signed with doesn’t have a G League affiliate, they will be sent to play with another team’s affiliate, according to SB Nation.

From the 2020-21 season, the amount of time a two-way player could play with his NBA team was increased to 50 games, while the minimum salary for two-way contracts increased from an initial $81,955 minimum to a salary worth up to $449,155.

What is an Exhibit 10 contract?

A one-year contract covered by Exhibit 10 has a minimum wage and no further bonuses. NBA teams have the choice to use the Exhibit 10 attachment to convert the contract into a Two-Way arrangement, but only if they do so before the start of the regular season.

The fact that they are typically not guaranteed lets teams waive the player without taking a cap hit. The player will receive a bonus of $5,000 to $50,000 if they commit to the team’s G League club for 60 days.

Exhibit 10s are helpful to teams for a variety of reasons. To begin with, depending on the player’s performance, it may be possible to convert the agreement to a two-way arrangement or to maintain them on a minimal contract. The player may also be released without incurring a cap penalty if the team isn’t convinced of their talent.

2023-24 NBA Two-Way and Exhibit 10 contracts: Team-by-team tracker

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