Introduction
Below are the different Contract Types a Player can sign:
- Standard NBA Contract;
- Two-Way Contract;
- Ten-Day Contract;
- Rest-of-Season Contract;
- Exhibit 10 Contract;
- Exhibit 9 Contract;
- Rookie Scale Contract.
Tyrese Martin of the Brooklyn Nets provides a timeline of how the different Contract Types can work.
9/20/2024 – Signs an Exhibit 10 Contract with the Nets as a UFA.
10/19/2024 – Exhibit 10 Contract is converted to a Two-Way Contract for the 2024-25 Season.
2/20/2025 – During the 2024-25 Season, Martin’s Two-Way Contract is converted to a 2-Year Rest-of-Season Contract with a Team Option for the 2025-26 Season.
6/28/25 – Nets exercise Martin’s Team Option for the 2025-26 Season.
Standard NBA Contract
Any NBA Contract signed is considered a Standard Contract unless it is a Two-Way Contract.
Ten-Day Contract
Ten-Day Contracts Generally
The Ten-Day Contract is a limited Contract allowing a Team to sign a Player for 10 days or 3 games.
It is typically used to fill the backend of the roster, particularly due to injury or for cost-saving measures.
Ten-Day Contracts can only be signed starting on January 5th, and Teams are limited to the amount of Ten-Day Signings based upon other Players on their Active and Inactive Lists at the time.
Dates of Eligibility
Ten-Day Contracts can be signed starting on January 5th of each Season.
Not eligible if the Contract would extend past the date of the Team’s last Regular Season game.
- Exception – A hardship waiver allows a 10-day Contract to be signed prior to January 5th, and would allow the Contract to run until the last day of the Regular Season if needed.
During the 2025-26 Season, the Pacers were permitted to sign Jeremiah Robinson-Earl and Cody Martin to 10-Day Contracts as their 19th and 20th Players on the Roster pursuant to the hardship exception.
Length
The longer of (i) ten days or (ii) a period encompassing three games played by the Team.
Salary
Apply the Minimum Salary, prorated over the number of days of the Contract.
On April 2, 2025, Elfrid Payton signed a 10-Day Contract with the Pelicans. Payton had 8 Years of Service at the time of signing.
Payton’s Minimum Salary for 8 YOS: $2,988,550
Payton’s Per-Day Minimum Salary: $17,175.57 ($2,988,550 ÷ 174 = $17,175.57)
Payton’s 10-Day Contract: $171,755.74 ($17,175.57 x 10 = $171,755.74)
Payton’s Earnings from 10-Day Contract: $171,756
Keep in mind, his Minimum Salary is subsidized to 2 YOS for Cap, Apron and Tax purposes:
Salary for 2 YOS: $2,087,519
Per-Day Subsidized Salary: $11,997.24 ($2,087,519 ÷ 174 = $11,997.24)
Payton’s 10-Day Contract Subsidized: $119,972 ($11,997.24 x 10 = $119,972.36)
Payton’s Salary for Team Salary, Apron and Tax: $119,972
Termination
Only written notice is required to terminate the Contract, with no Waiver procedure.
The Team cannot resign the Player until the term of the original Contract expires.
Amendment to Rest-of-Season Contract
While the Ten-Day Contract is in effect, the Team and Player can sign a Rest-of-Season Contract that goes into effect once the Ten-Day Contract expires.
Number of Ten-Day Signings
One Team cannot sign a single Player to more than two Ten-Day Contracts.
A Team is limited to the number of Ten-Day Contracts at one time, dependent on the number of Players it has on its Active/Inactive List, including the Ten-Day Contracts:
| Players on Active/Inactive List | Ten-Day Contracts Permitted |
|---|---|
| 12 | 0 |
| 13 | 1 |
| 14 | 2 |
| 15 | 3 |
Rest-of-Season Contract
Once the Regular Season begins, Players signing new Standard Contracts that are not Ten-Day Contracts are signing Rest-of-Season Contracts.
The Rest-of-Season refers to the remainder of the current Season, but the Contract can include future Seasons as well.
Oftentimes, the Player will be signed using the Minimum Exception. However, Teams that still have portions of their Mid-Level Exceptions or Cap Space available may entice Players to sign with them for more than their Minimum Salary.
In 2024-25, the Raptors signed Colin Castleton to a 2-Year Rest-of-Season Contract at the very end of the Regular Season on April 13th. Toronto used a portion of their remaining NTMLE to sign Castleton to a $100,000 salary for the rest of the Season, which was more than his applicable Minimum Salary. This gave Castleton more Compensation while giving Toronto team control over Castleton for the 2025-26 Season.
Salary will be prorated based upon the number of days remaining in the Season.
During the 2024-25 Season, Lonnie Walker signed a Rest-of-Season Contract with the 76ers that included a Team Option for the 2025-26 Season. His Minimum Salary was $2,613,120. With 52 days remaining in the season, his prorated salary was $780,932.
$2,613,120 (÷) 174 = $15,017.93 per-day Salary.
$15,017.93 x 52 = $780,932 pro-rated Salary.
Teams will optimize the Rest-of-Season Contracts later in the Regular Season to stay below a particular Cap/Tax/Apron threshold while satisfying minimum Roster requirements.
Entering the 2024-25 Season, the Knicks were pressed against the Second Apron where they were hard capped after acquiring Karl-Anthony Towns. They had signed Second Round Pick Ariel Hukporti to a Two-Way Contract at the start of the Season while carrying the minimum 12 Standard Contracts, which is only permitted for a limited time.
The Knicks later converted his Contract to a Rest-of-Season Contract to help get to the necessary 14 Standard Contracts. Had he signed at the start of the Season his Salary would have been $1,157,153. Waiting until November 4th, his salary was prorated to $1,064,049, saving them close to $100,000 in Team Salary.
Two-Way Contract
Two-Ways Generally
The Two-Way Contract allows a Player to play for both an NBA Team and its G League affiliate while not taking a Standard Contract Roster Spot.
The Team can convert the Two-Way Contract to a Standard NBA Contract.
The NBA Team has exclusive rights to the Player under a Two-Way Contract (unlike G League Contracts, which contain no exclusivity and any NBA Team can sign).
The Two-Way Contract is limited in the amount of games a Player can be on the NBA Roster, and only Players with 4 YOS or less are eligible to sign Two-Way Contracts, subject to exception.
Two-Way Contract Terms
Conversion Option
Every Two-Way Contract contains a Two-Way Conversion Option allowing the Team to convert it from a Two-Way Contract to a Standard Contract.
Can be converted after July 1 and must be converted prior to the start of the Team’s last Regular Season game.
The following occurs upon conversion:
- The term length will remain the same as the Two-Way Contract; and
- Player is paid his applicable Minimum Salary.
Negotiating a New Standard Contract
The Player and Team can negotiate a new Standard Contract, but such Contract may not include an Exhibit 10.
If executed, the Two-Way Contract is null and void.
In 2024-25, Oklahoma City signed Ajay Mitchell to a 1-year Two-Way Contract. The Team could have converted his Contract to a Standard Contract for the remainder of the Season. Instead, OKC and Mitchell agreed to a new 2-year Contract for more Salary than the Minimum. OKC used the Room MLE to sign Mitchell for over the Minimum Salary.
Salary
Players earn 50% of the Minimum Salary applicable to Minimum Salary for Players with 0 Years of Service.
Salary will be prorated should the Player not be signed for the entire Regular Season.
Length
The length cannot exceed 2 years and cannot include Options or ETO’s.
Payment Arrangements
Cannot include Loans, Bonuses, Incentive Compensation, Deferred Compensation or alternative pay schedules.
Compensation Protection
Maximum Two-Way Protection Amount
The Maximum Two-Way Protection Amount is $85,300, which increases each season in line with the Salary Cap.
- Exception – If Two-Way Contract signed after first day of Regular Season, Protection is limited to 50% Base Compensation.
Conditional Protection
Compensation Protection can be conditional up to 50% of Base Compensation based upon the Team not waiving the Player by a certain date on or after the start of the Regular Season.
Two-Way Limitations
Eligibility
Dates of Eligibility
Cannot be signed after March 4th.
Player Eligibility
Cannot sign a Player to a Two-Way Contract who has or could have 4+ YOS at any point during the Contract:
- Exception – Permitted if Player has 4 YOS and was credited with 1 or more YOS with which (i) he did not play in any game and (ii) was on a Team’s roster at all times from the first day of the Regular Season through the end of the last day of the Regular Season.
Team Eligibility
Cannot sign, convert or acquire a Two-Way Player if the Player was under a Two-Way Contract for any part of more than 3 Salary Cap Years with the same NBA Team.
Number of Two-Way Signings
Cannot have more than three Two-Way Contracts signed to the Roster at one Time.
Player cannot be on the Active List for more than 50 Games, which is prorated should he be signed after the start of the Regular Season.
A Team cannot have more than 90 Under Fifteen Games during the Regular Season.
- Calculating Under Fifteen Games: (i) The Team has fewer than 15 Players signed to Standard NBA Contracts and (ii) the number of Two-Way Players on the Active List for such game is the number counted toward Under-Fifteen Games (i.e. if there are 13 players signed to Standard Contracts and 2 Two-Way Players on the Active List for the game, then it counts as two Under-Fifteen Games).
Two-Ways and Team Salary
Two-Way Contracts do not count toward Team Salary.
Exhibit 10 Contract
Exhibit 10’s Generally
An Exhibit 10 Contract is a Standard Contract that allows the Team to convert the Contract to a Two-Way Contract (essentially the reverse of a Two-Way Contract).
Exhibit 10’s also allow a Team to sign a Player to a non-guaranteed Contract, but include a bonus, called an Exhibit 10 Bonus, discussed in more detail below.
Jazian Gortman signed an Exhibit 10 Contract with the Dallas Mavericks in the 2024 Offseason. Dallas converted his Exhibit 10 Contract to a Two-Way Contract prior to the Regular Season.
Conversion Option
If the Conversion Option is exercised by the Team:
- Becomes a Two-Way Contract;
- Paid Two-Way Salary;
- Exhibit 10 Bonus is rescinded;
- Conversion Protection Amount is triggered;
- All other terms remain in Contract.
After Conversion, it can be converted back to a Standard NBA Contract via the Standard NBA Contract Conversion Option contained in the Two-Way.
Timing
An Exhibit 10 must be converted to a Two-Way Contract prior to the first day of the Regular Season.
Unsigned Second Round Picks
If the Drafting Team signed a Second Round Pick to a Required Tender and subsequently waived the Player, the Drafting Team still has exclusive Two-Way rights to the Draftee until the Subsequent Draft.
Therefore, the Non-Drafting Team Signing him to a Standard Contract can’t convert him via Exhibit 10 to a Two-Way Contract because it will breach the exclusivity.
Number of Exhibit 10’s
No Team may sign more than 6 Contracts containing an Exhibit 10 at one time.
Exhibit 10 Contract Terms
Required Terms
Must be for 1 Season and for Minimum Salary.
Cannot provide for Bonuses other than an Exhibit 10 Bonus (below).
No Compensation Protection permitted other than the Exhibit 10 Conversion Protection Amount (below).
Conversion Protection
An Exhibit 10 Contract can have Compensation Protection (for lack of skill/injury/illness) that triggers at the start of the Regular Season if it’s not terminated and/or if it’s converted to a Two-Way Contract.
The Exhibit 10 Conversion Protection Amount can be between $5,000 and $85,300 (increases in line with the Salary Cap), but must match the Exhibit 10 Bonus amount, if an Exhibit 10 Bonus (discussed below) is contained in the Contract.
Exhibit 10 Bonus
Amount of Exhibit 10 Bonus
Can be between $5,000 and $85,300 (increases in line with the Salary Cap).
An Exhibit 10 Bonus does not count toward Team Salary.
How Exhibit 10 Bonus is Triggered
An Exhibit 10 Bonus is triggered when the following elements are satisfied:
- Waived prior to the Regular Season;
- Player signs with G League Team prior to the deadline to designate affiliated players;
- Assigned to the G League affiliate and timely reports;
- Provides 60-days of consecutive service (injury does not stop clock).
Trade of an Exhibit 10 Contract
If a G League Affiliate acquires an Exhibit 10 Contract via trade and the Contract contains Conversion Protection, but not an Exhibit 10 Bonus, then the Exhibit 10 is deemed to include an Exhibit 10 Bonus equal to the Conversion Protection Amount.
Exhibit 9 and Exhibit 10
A Contract can include both Exhibits 9 and 10. However, if a Contract is converted to a Two-Way Contract, then the Exhibit 9 is null and void.
Two-Way Conversion and Exhibit 10
If a Two-Way Contract is converted into a Standard Contract, the Standard Contract cannot include an Exhibit 10.
G League Rights
G League Rights Generally
The G League’ operates on universal 1-year Contracts for all Players. In determining which Team has priority to sign the Player in the offseason, there is an order of priority for assigning the Players, based on the type of “Rights” the Team may have to a Player.
Two of those are Returning Rights and Affiliate Rights.
- Returning Rights – Players who played the prior G League season with the G League Team; and
- Affiliate Rights -Players who participated in Training Camp with the G League Team’s affiliated NBA Team.
Returning Rights have preference over Affiliate Rights.
G League Rights and the Exhibit 10 Bonus
The Exhibit 10 Bonus is awarded to an Affiliate Player when he is waived by the NBA Team, and then is assigned to the G League affiliate Team.
What happens if another Team has Returning Rights to the Affiliate Player and therefore signs him using its priority over the Team with the Affiliate Rights?
The Player will be ineligible for the Exhibit 10 Bonus because he does not play for the affiliate G League Team.
Notice of Returning Rights
The NBA Team, when signing him to his Exhibit 10 Contract, is required to provide notice that a different NBA G League Affiliate holds his Returning Rights . This allows the Player to understand the risk that he may not play for the affiliate G League Team if his Exhibit 10 Contract is waived.
In the 2025 offseason, the Houston Rockets sign Player A to an Exhibit 10 Contract with an $85,300 Exhibit 10 Bonus.
Prior to the Regular Season, the Rockets waive Player A, with the intention to have him play with their G League Affiliate, the Rio Grande Valley Vipers, using their Affiliate Rights to sign him. This would earn Player A his $85,300 bonus should he play for 60 consecutive days.
However, Player A played the 2024-25 G League Season with the Austin Spurs, who have his Returning Rights and a higher priority to sign him over the Vipers. The Spurs sign him in the G League, and Player A loses out on his $85,300 (but should have had notice in his Exhibit 10 Contract with the Rockets that the Spurs had his Returning Rights).
Exhibit 9 Contract
Exhibit 9’s Generally
An Exhibit 9 Contract is a Training Camp Contract that allows a Team so sign a Player to its Roster without the need to pay any Base Compensation unless the Player makes the Regular Season roster.
The Exhibit 9 Contract allows the Player to compete in Training Camp for a Roster Spot while the Team bears no risk should they want to cut the Player prior to the Regular Season.
Note that no Player may attend training camp unless he is a party to a Contract then in effect. Exhibit 9 Contracts allow Teams to bring Player to Training Camp under a Contract with limited risk.
Exhibit 9 Contract Terms
Required Terms
Below are the required terms if a Contract includes an Exhibit 9:
- Must be for 1 Season in length;
- Provides for Minimum Salary (with no bonuses of any kind) or a Two-Way Salary;
- Does not provide for Compensation Protection of any kind.
Exhibit 9 Eligibility
Player Eligibility
A Team cannot sign a Veteran Free Agent to a Summer Contract if he last played for the Team unless (i) it is for 1 Season and (ii) provides for no more than the applicable Minimum Salary.
Team Eligibility
Team has no fewer than 14 Players signed to Standard NBA Contracts (this does not include Two-Way Contracts or Non-Guaranteed, Training Camp Contracts) on the Team’s Roster in respect of the upcoming Season.
One Team cannot have more than six Non-Guaranteed Training Camp Contracts.
Ex. 9 and Team Salary
An Exhibit 9 Contract will not be counted toward Team Salary until the start of the Regular Season (called a Summer Contract).
The Contract must be waived prior to the start of the Regular Season, or the Team must have Room to retain the Player’s Salary (likely using the Minimum Exception).
The Rookie Scale Contract
The Rookie Scale Contract is the Contract signed by all First Round Picks.