Breaking Down the Key Contract Terms in the NBA

Player Option

A player option allows the player to terminate their contract and become an unrestricted free agent at the end of the season. This gives players the flexibility to test the market and potentially sign a more lucrative contract elsewhere.

Team Option

A team option allows the team to terminate the player's contract at the end of the season. This gives teams the flexibility to cut ties with players who underperform or become injured.

Qualifying Offer

A qualifying offer is a contract offer that a team can make to a restricted free agent. If the player accepts the offer, they will remain with the team for one more season. If they reject the offer, they become an unrestricted free agent.

Two-Way Contract

A two-way contract is a type of contract that allows a player to split time between the NBA and the NBA G League. This gives teams the flexibility to develop young players while also providing them with playing time.

Recent Example: Nerlens Noel's Contract Situation

Detroit Pistons center Nerlens Noel recently settled his legal case with agent Rich Paul and Klutch Sports Group. As part of the settlement, Noel will pay the full commission he owed Paul. Noel has since signed a one-year, $31 million deal with the Sacramento Kings.