Two-Way Contracts maintain that a player can play with the parent club of an NBA Organization (San Antonio Spurs, Austin Spurs) for up to 45 days of the NBA Regular Season, including games, practice, travel, etc. Since the official start of the NBA Season was October 17, 45 days from that date would be December 1. Because most teams did not carry their two-way players as roster spots 16 and 17 every day thus far, the termination of some of those 45 day contracts is here or quickly approaching.
Two-Way contracts may only be extended to players with under four Years of Service in the NBA (thus a two-year Two-Way may not be signed by a player with 3 Years of Service).
However, in light of these 45 days expiring, teams have the option of waiving the player and starting fresh with another player and a new Two-Way Contract. Players can be signed to a Two-Way after the beginning of the season and the contracts will simply be prorated. In other words, teams can use the Two-Way as extended Ten-Day Contracts, with the option to convert or waive the player.
On December 17, the Milwaukee Bucks announced that they would be waiving Gary Payton II, as he was coming to the end of his 45 days with the parent club. In turn, they have signed Sean Kilpatrick to a Two-Way Contract. Around the league, we see the Atlanta Hawks convert Tyler Cavanaugh’s Two-Way Contract into a multi-year deal.
Per Article II Section 9c of the 2017 NBA CBA, Two-Way Players and 10-Day players can coexist on an NBA Roster. An NBA Team cannot sign a player to more than two 10-Day contracts in a given season. A team may use the following formula to calculate how many 10-Day contracted players they can have on the team at one time:
# of Active + Inactive Players on Roster – 12 = Max Number of 10-Day Players
For example, if a team has 14 Active/Inactive Players (Aggregate), then they may sign two 10-Day players so long as the aggregate roster remains at 14.
As of January 5, 10-Day contracts can begin to be issued and signed by NBA Teams. January 15 is the last day to sign Two-Way Contracts.
On December 5, 2017, the NBA has granted the Los Angeles Clippers a $2.75 million disabled player exception to offset the season-ending injury to guard Patrick Beverly.
According to the 2017 CBA Article VII Section 6c, a team may be granted one Disabled Player Exception in order to acquire a Replacement Player for the disabled player, suffering from a disabling injury or illness (defined in the CBA). The team may sign the replacement player to the following contract – the lesser of the options below:
Patrick Beverly’s 2017-2018 contract is for $5.514 million. Thus, 50% of that contract is less than the Non-Taxpayer MLE, resulting in a $2.75 million disabled player exception.
When Gordon Hayward was lost at the beginning of the season, the Celtics were granted a Disabled Player Exception of $8.40 million because it was less than half of his $29.7 million salary in 2017-2018.
I'm Jake, a recent graduate of Duke University pursuing a career in collegiate or professional basketball operations.
Cap #s 2018 - 2019
Salary Cap: $101.869M
Lux. Tax: $123.733M
Tax Apron: $129.827M
Tax Floor: $91.682M
Room MLE: $4.45M