Community Shootaround: Two-Way Contracts

Twelve months ago, few NBA fans understood what two-way contracts were. After a year in place, it’s clear that teams have vastly different philosophies on how to utilize this new class of player.

Instituted under the latest Collective Bargaining Agreement, two-way contracts give the best G League prospects a chance to get some NBA exposure, while giving teams an easily accessible supply of reinforcements in case of injuries. Each team has a pair of two-way slots to use, and players with two-way contracts are limited to 45 days of NBA service, which counts practices and traveling as well as games.

A player who hits the 45-day limit cannot spend any more time with his NBA team until the G League season ends, unless his contract is converted to a standard NBA deal. Players with two-way contracts are also ineligible for the postseason, which is why the Warriors had to open a roster spot for Quinn Cook in April, which cost them Omri Casspi.

Cook was the most successful two-way player last season, appearing in 33 games, starting 18, and posting a 9.5/2.5/2.7 line. He was a valuable reserve for the Warriors all the way through their run to a championship.

While NBA service time is limited in two-way deals, so is compensation. The minimum salary ranges from $838,464 for a player with no experience to $1,621,415 for a player with four years of service, which is the maximum allowable for a two-way contract. Rules allow two-way players to collect up to $275K, but most make far less.

That salary structure is among the reasons the contracts aren’t universally popular. Even though they create 60 more NBA jobs, an unidentified agent recently told Justin Jett of DefPen that the league is taking advantage of the new system.

“Teams are explicitly violating two-way compensation rules,” the agent claimed. “There’s no good way to ‘police’ these deals. Agents get paid basically nothing on these deals and teams flat out lie to try to steal money from, and exploit, two-way contract players.”

We want to get your opinion. Have two-way contracts been good for the NBA and the players, or do changes need to be made? Please leave your responses in the space below.

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