A two-way contract is a type of professional sports contract that allows developing players to be rostered on both an NBA team and its G League affiliate. The NBA first instituted the two-way contract in 2017-18 to allow teams to have more players at their disposal and give fringe players an opportunity to audition for a bigger role in the league. Here are some key points to remember about two-way contracts:

• Salary: Players on two-way contracts are paid a flat rate that is equal to half of the league’s minimum salary. However, these contracts are not guaranteed, so the players can be cut at any point, and will only receive their salary up to that point.

• Eligibility: Only players with three or fewer years of NBA service are eligible for two-way contracts. Each NBA team can have up to two players on this type of contract.

• Games: Two-way players are only eligible to be active in a maximum of 50 games with their NBA team. If their team does not have an affiliate, they will be sent to play with another teams affiliate.

• Postseason: Two-way contracts are ineligible for postseason rosters.

• Benefits: The two-way contract system benefits young undrafted players who do not want to play professional basketball overseas and want to play in the NBA, as well as those who believe an organizational investment in them is beneficial toward their development.

Two-way contracts are not just limited to basketball. For example, two-way contracts are common for professional ice hockey players who aspire to play in the National Hockey League (NHL).