Module 2 Pt. 2 Vocab

Question 1

Buyout

Answer 1

A “divorce” agreement between a player and team, where the player’s contract is amended to reduce the player’s compensation protection to a negotiated amount, in exchange for the team waiving the player

Question 2

Exhibit 9

Answer 2

A contract provision that limits the team’s liability to $6,000 if the player is injured while playing for the team.
Is often used for training camp invitees

Question 3

International Buyout

Answer 3

A payment made to an international team to release a player’s rights, allowing the player to sign with an NBA team

Question 4

Letter of Clearance

Answer 4

A document from a FIBA member’s national organization stating that a player is not under contractual obligation in that country

Question 5

Offer Sheet

Answer 5

A contract offer made to a restricted free agent. The player’s prior team is given 48 hours to match the principal terms of the qualifying offer, in which case the prior team retains the player according to those principal terms

Question 6

Principal Terms

Answer 6

The offer sheet terms, including years, salaries, options, guarantees and some bonuses, that a restricted free agent’s prior team must match to exercise its right of first refusal and retain the player

Question 7

Qualifying Offer

Answer 7

A pro forma contract offer made to a team’s free agent in order to secure its right of first refusal, making the player a restricted free agent

Question 8

Restricted Free Agent (RFA)

Answer 8

A player who is subject to restricted free agency. After signing an offer sheet with a new team, a restricted free agent’s prior team may match the Offer Sheet and retain the player

Question 9

Rookie Free Agent

Answer 9

An undrafted rookie, who is free to sign with any team

Question 10

Sign and Trade

Answer 10

A transaction in which a team re-signs its free agent for the purpose of a trade to a specific team.
The trade to the specific team must be completed within 48 hours of the signing

Question 11

Summer Contract

Answer 11

A 1 year, non-guaranteed, minimum salary contract, with no salary paid in advance of the regular season, that does not count against the team’s cap unless the player makes the team’s regular season roster.
Summer contracts are often used for training camp invitees

Question 12

10 Day Contract

Answer 12

A temporary contract lasting 10 days, or 3 games, whichever is longer

Question 13

Two Way Contract

Answer 13

A hybrid between an NBA player and a G-League player.
A Two Way Player may spend up to 45 days with his NBA club, and his salary depends on which league he is with on a given day

Question 14

Veteran Extension

Answer 14

An amendment to an existing contract (other than a Rookie Scale Contract), executed before the contract ends, adding additional seasons to the contract