The CBA Glossary

Eligibility

A whole new section establishes that any NBA team looking to sign a player from a different NBA team's G League affiliate to an Exhibit 10 deal when that player is eligible to rejoin their affiliate as a "returning" player must now expressly put in writing that they can do that. Which looks like something that should come with an origin story attached. (But does not.)

(a) During the period from the first day of the Regular Season through the last day of the Season, a Two-Way Player shall be placed on his Team’s (i) Active List or Inactive List (as applicable) while the Two-Way Player is providing services to the NBA Team, and (ii) Two-Way List at all other times. (b) A Two-Way Player is not eligible to be designated on an NBA Team’s postseason roster or participate in NBA postseason games, but is permitted to travel and practice with the Team and remain on the Team’s Inactive List during the NBA postseason; provided, however, that subject to Section 4 below, a player who was previously a Two-Way Player but who, prior to the start of the Team’s last Regular Season game, either signs a Standard NBA Contract in accordance with Article II, Section 11(h) or has his Two-Way Contract converted by the Team to a Standard NBA Contract Article XXIX 431 pursuant to Article II, Section 11(g), is eligible to be designated on an NBA Team’s postseason roster and participate in NBA postseason games.

Limits

(a) Two-Way Player Salary. (i) Subject to the limitations set forth in this Section 11, an NBA Team may enter into a Player Contract that provides a player (“Two-Way Player”) with a Salary as set forth in Section 11(a)(ii) below for providing services to both an NBAGL team and the NBA Team (“Two-Way Contract”). (ii) The Salary provided for in a Two-Way Contract (the “Two-Way Player Salary”) for a Season shall equal fifty percent (50%) of the Minimum Annual Salary called for under Article II, Section 6(a) for a player with zero (0) Years of Service (irrespective of how many Years of Service the player has accrued prior to the Contract or accrues during the term of the Contract), multiplied by a fraction, the numerator of which is the number of days remaining in the Regular Season as of the date such Contract is entered into (including the day on which the Contract is entered into), and the denominator of which is the total number of days of that Regular Season. (iii) Notwithstanding anything to the contrary in this Agreement, no Two-Way Contract may include or provide for any Article II 51 (A) bonuses or Incentive Compensation of any kind, (B) deferred compensation, or (C) loans. (iv) Every Two-Way Contract must contain an Exhibit 1B and include the following sentence in such Exhibit (which shall be deemed amended in the manner described in such sentence): “This Contract is intended to provide for a Base Compensation for the ____________ Season(s) equal to the Two-Way Player Salary for such Season(s) (with no bonuses of any kind) and shall be deemed amended to the extent necessary to so provide.” (v) A Two-Way Contract that, at the time the Two-Way Contract is signed, is partially protected for lack of skill and injury or illness for a Season may be amended to provide for the Two-Way Player to be paid a portion of his Base Compensation for such Season (the “Advance”), up to the Two-Way Contract Advance Limit as defined below, prior to November 1 of such Season. The Two-Way Contract Advance Limit for a Season shall equal fifty percent (50%) of the amount of the Two-Way Player’s Base Compensation for such Season that is protected for lack of skill and injury or illness at the time of signing. Any Advance paid to a player for a Season pursuant to the foregoing must be deducted from the first installment of Base Compensation (i.e., on November 1) and, if and as necessary after reducing in full the first installment, each subsequent installment of Base Compensation for such Season that such player would have received pursuant to Paragraph 3(a) of the Uniform Player Contract had there been no such Advance. To effectuate the requirement set forth in the preceding sentence, every such Two-Way Contract that provides for an Advance must contain the following language (and, with respect to an Advance, only such language) in Exhibit 1B with respect to each applicable Season: “Payment Schedule (if different from Paragraph 3): Player’s Base Compensation with respect to the _________ Season(s) shall be paid in accordance with 52 Article II Paragraph 3(a), except that the November 1 installment of such Base Compensation and, if and as necessary after reducing in full the November 1 installment, each subsequent installment of such Base Compensation for such Season shall be reduced by $[amount of Advance], which amount shall be paid to Player in advance on [date].”

It is expressly prohibited in the Uniform Player Contract for two-ways and Exhibit 10 contracts to include player options, team options or ETOs. Not that it is easy to work out how that would even be possible in the first place. ⓘArticle II (Uniform Player Contract) Section 2 (Limtation on Amendments):

(b) Notwithstanding Section 2(a) above, except as provided: (i) in Sections 3(f), (i), (j), (l), (m), (n), (o), (p), and (r), and Section 11 of this Article, no amendments to Two-Way Contracts shall be permitted; and (ii) in Sections 3(e), (h), (j), (l), (m), (n), (o), (p), (r), and (s), and Section 11 of this Article, no amendments to Contracts containing an Exhibit 10 shall be permitted. For the avoidance of doubt, in no event may a Team and a player extend, renegotiate, or include an Option Year or Early Termination Option in a Two-Way Contract or a Contract containing an Exhibit 10.

Cap impact

Two-way contracts do not count towards the salary cap. Roster spots, yes, but not the cap.

Salary

No Team may have on its roster at any time more than three (3) Two-Way Players. (ii) No player under a Two-Way Contract may be on the Active List for more than fifty (50) games during a Regular Season. If a player is signed to a Two-Way Contract after the start of a Regular Season, the maximum number of games for which such player may be on the Active List during that Regular Season shall be fifty (50) multiplied by a fraction, the numerator of which is the number of days remaining in such Regular Season as of the date such Two-Way Contract is entered into (including the day on which the Two-Way Contract is entered into), and the denominator of which is the total number of days of such Regular Season, rounded to the nearest whole number; provided, however, that in no event shall the maximum number of games for which a player may be on the Active List be fewer than one (1). (iii) Any Regular Season game for which a Team has fewer than fifteen (15) players signed to Standard NBA Contracts shall be an “Under-Fifteen Game.” No Team shall be permitted to have a Two-Way Player on its Active List for more than ninety (90) Under-Fifteen Games during a Regular Season. For purposes of the foregoing rule: (A) an Under-Fifteen Game for which a Team has one (1) Two-Way Player on its Active List shall count as one (1) Under-Fifteen Game; (B) an Under-Fifteen Game for which a Team has two (2) Two-Way Players on its Active List shall count as two (2) Under-Fifteen Games; and (C) an Under-Fifteen Game for Article II 53 which a Team has three (3) Two-Way Players on its Active List shall count as three (3) Under-Fifteen Games. (c) Compensation Protection. (i) The maximum amount of aggregate Base Compensation protection for a Season in a Two-Way Contract is the “Maximum Two-Way Protection Amount” (defined below) for such Season, provided that if such Contract is signed after the first day of the Regular Season, the maximum amount of aggregate Base Compensation protection for such Season is fifty percent (50%) of the Base Compensation provided for by such Contract for such Season. In addition, a Two-Way Contract may also provide for Base Compensation protection for a Season to increase to up to fifty percent (50%) of the Base Compensation provided for by such Contract for such Season if the Team does not request waivers on the player by a certain date that is on or after the first day of the Regular Season encompassed by such Season. (ii) The “Maximum Two-Way Protection Amount” shall be $75,000 for the 2023-24 Season, and for each subsequent Season shall be $75,000 multiplied by a fraction, the numerator of which is the Salary Cap for the Salary Cap Year encompassing the applicable Season and the denominator of which is the Salary Cap for the 2023-24 Salary Cap Year. (iii) If a Team assigns or terminates a Player Contract that contains aggregate Base Compensation protection in respect of the then-current and any future Salary Cap Year that exceeds the Maximum Two-Way Protection Amount for the Season encompassed by the Salary Cap Year in which such assignment or termination occurs, then, during such Salary Cap Year, the player shall be precluded from: (x) playing under an NBAGL contract for such Team’s NBAGL affiliate, and (y) entering into a Two-Way Contract with such Team. 54 Article II (d) Contract Term. The term of a Two-Way Contract may not exceed two (2) Seasons in length and may not include any Option Year or Early Termination Option. (e) Eligibility. The following eligibility rules shall apply to all TwoWay Contracts: (i) No Team may sign a player to a Two-Way Contract after March 4 of any Season. (ii) No Team may sign or convert a player to a Two-Way Contract if the player has or may have four (4) or more Years of Service at any point during the Contract. For example, a player with three (3) Years of Service would not be eligible to sign a Two-Way Contract with a term of two (2) years. Notwithstanding the foregoing, a Team may sign or convert a player who has four (4) Years of Service to a Two-Way Contract covering no more than one (1) Season if the player was credited with one (1) or more Years of Service in respect of a Season in which he (A) did not play in a Regular Season, Play-In, or playoff game and (B) 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. (iii) No Team may sign or convert a player to a Two-Way Contract, or acquire a Two-Way Contract by means of assignment, if, as a result, the player would or could be under a Two-Way Contract for any part of more than three (3) Salary Cap Years with the same NBA Team. For example, a player who completes a two-year Two-Way Contract with a Team could not subsequently sign a two-year Two-Way Contract with that Team. (f) Standard NBA Contract Conversion Option. Every Two-Way Contract shall provide the Team with an option to convert the Two-Way Contract during its term to a Contract that is not a Two-Way Contract (“Standard NBA Contract”) that provides for a Salary for each Salary Cap Year equal to the player’s applicable Minimum Player Salary and a term equal to the remainder of the original term of the Two-Way Contract beginning on the date such option is exercised (“Standard NBA Contract Conversion Article II 55 Option”). Such player’s applicable Minimum Player Salary shall be determined in accordance with Section 6 above. For the day the Standard NBA Contract Conversion Option is exercised, the player shall be compensated only under the new Standard NBA Contract, and not under his Two-Way Contract. The Standard NBA Contract Conversion Option may be exercised at any point during the period beginning on July 1 and ending just prior to the start of the Team’s last Regular Season game in each Salary Cap Year covered by the Two-Way Contract. Upon conversion, such Contract shall become a Standard NBA Contract and shall no longer be governed by the provisions of this Agreement governing Two-Way Contracts. To effectuate the requirements set forth in the preceding sentences, every Two-Way Contract with an Exhibit 1B must contain the following language (and only such language) under the “Standard NBA Contract Conversion Option” heading: “Team shall have the option to convert this Contract to a Standard NBA Contract (“Standard NBA Contract Conversion Option”). Team’s Standard NBA Contract Conversion Option may be exercised by providing written notice to Player that is either personally delivered to Player or his representative or sent by email or pre-paid certified, registered, or overnight mail to the last known address of Player or his representative with a copy to the Players Association and the NBA. If Team exercises the Standard NBA Contract Conversion Option, the Base Compensation amount set forth above in this Exhibit 1B will immediately become null and void and of no further force or effect, Player’s Compensation shall be equal to the Player’s applicable Minimum Player Salary for a term equal to the remainder of the original term of this Contract beginning on the date such option is exercised, and all other terms and conditions of this Contract, including the Base Compensation protection set forth in Exhibit 2 (if any), shall remain applicable.” (g) Exclusive Rights. (i) During the term of a Two-Way Contract, the Team that is the party to the Two-Way Contract shall be the only Team with which the Two-Way Player may negotiate or sign a Standard NBA Contract. (ii) The Team and the Two-Way Player who are parties to such Two-Way Contract shall have the right to negotiate and 56 Article II agree to a Standard NBA Contract in accordance with the terms of this Agreement. Notwithstanding anything to the contrary in this Agreement or the Uniform Player Contract, (1) such Standard NBA Contract may not include an Exhibit 10, and (2) upon execution of the Standard NBA Contract, the prior Two-Way Contract between the Team and player will immediately be rendered null and void and of no further force or effect. For the day the Standard NBA Contract is executed, the player shall be compensated only under the new Standard NBA Contract, and not under the prior Two-Way Contract.

Free agency

In the
event that a Two-Way Contract is converted to a Standard NBA Contract
pursuant to the Team’s exercise of its Standard NBA Contract Conversion
Option, the Contract shall no longer be a Two-Way Contract for the
purposes of this Agreement.

Converting two-way contracts

“Two-Way Player Conversion Option” means an option in a
Player Contract with an Exhibit 10 in favor of a Team to convert the
Contract to a Two-Way Contract in accordance with Article II,
Section 3(s)(ii) and Section 11(h).

WHAT THE CBA ACTUALLY SAYS

1. What the salary cap is From why we're even here, to the difference between a hard cap and soft cap.
2. Fundamental salary basics Guarantees, proration, maximum raises/decreases, 10-day contracts, roster sizes, etc

MAIN TAKEAWAYS: