Two-way contract

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.

Two-way contracts are common for professional ice hockey players who aspire to play in the National Hockey League (NHL). Any hockey player entering the NHL for the first time will sign an entry-level, two-way contract with an NHL team stipulating that he will receive a higher salary if assigned to play with the NHL team, but will receive a lower salary if assigned to play for a team in the minor leagues such as the American Hockey League or the ECHL.

Beginning in the 2017–18 season, the National Basketball Association added two-way contracts between NBA teams and their NBA G League affiliates. Excluding time spent before and after the G League's season begins and ends, players on two-way contracts can spend up to 45 days in the NBA while spending the rest of the season in the G League. As of the 2017–18 season, players earn $75,000 while they are in the G League and roughly $204,000 if they spend 45 days in the NBA. The closer the season gets to the January 7, 2018 deadline, the more days an NBA team could decrease the desired amount of days for a two-way contract to play under, such as Danuel House receiving a 30-day long length in the NBA instead of the more typical 45 days.