A two-way contract is a professional sports contract which stipulates that an athlete's salary is dependent upon the league in which the athlete is assigned to play. This is opposed to a one-way contract that would pay the same salary regardless of where the athlete is assigned to play.

What is a 2 way contract NBA?

The two-way contract was introduced to benefit undrafted players who do not make the cut in the NBA Draft and enables teams to keep these players "on retainer" without having to sign to a full-time contract. Players drafted during the first or second-round of an NBA draft are also often signed to two-way contracts.

Are two-way contracts guaranteed?

Benefits and Limits of a Basketball Two-Way Contract Player

Summarily, the following will be true of a player who signs a two-way contract: He'll be on both the G League and NBA teams. He'll enjoy guaranteed payments, but there's no contract security because he can be replaced by another two-way player at any time.