D-League salaries, two-way contracts increase NBA Draft early entries

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Yesterday, I wrote a piece about how it’s dumb to criticize players for entering the NBA Draft without costing themselves their collegiate eligibility when the NCAA’s new NBA Draft rules are specifically designed for said players to be able to do that.

In that column, I mentioned that D-League salaries are on the rise and that the NBA’s new CBA instituted something called “two-way contracts,” and I wanted a chance to elaborate and clarify a couple of the points that I made.

Let’s start with the “two-way contracts,” which NBA teams each get two of. They are essentially a retainer that those teams can place on younger players they want to be the 16th and 17th men on their roster, holding their rights as they bounce between the D-League — where they will likely spend the majority of the year — and the NBA. The catch is that those players have to have less than three years service as a professional, and the point of it is to provide a financial incentive for younger players with the potential to reach the NBA to remain stateside while allowing those NBA teams to develop them.

That financial incentive is fairly large, as well: Two-way players will make $75,000 guaranteed and will be able to make up to $275,000, depending on the amount of time they spend with the NBA team.

That means there are an extra 60 jobs this season that can end up paying players with less than three years of professional basketball experience upwards of a quarter-of-a-million dollars.

That’s not a bad starting salary.

The other point that I wanted to address is the rising D-League salaries which, technically, will not be rising. There are still going to be Tier A and Tier B players, who make $26,000 and $20,000 respectively. But the NBA has something called affiliate players, which each of the now-25 NBA teams with a D-League affiliate can pay up to $50,000 for training camp. NBA teams are allowed a maximum of four affiliate players, who will still make their $26,000 salary from their D-League team.

In other words, that’s 100 more jobs available in the United States where a professional basketball player can make $76,000, and that’s before you consider that the five NBA teams that do not yet have a D-League affiliate will still have to pay players to get them into training camp.

That $76,000 is not a life-changing amount of money. Neither is the $275,000 that a two-way contract can pay. But it’s a pretty damn good paycheck to make for an entry-level job into the industry that you always dreamed of being in.

Athletes have an unbelievably small window where they can capitalize monetarily on their gifts.

If a 21-year old sophomore decides that he wants to continue to develop his game and chase his NBA dream by making $76,000 as a D-League player, is that really all that crazy?

After all, 135 of the 450 players, or 30 percent of the roster spots, on NBA’s opening night were taken by guys that had spent time in the D-League.

There’s more than one way to make a dream come true.