That is the old system (see more below on that)
This link explains how it works currently
Two-way contract FAQ
Although the link above does not state the flat annual salary, other googling suggest the flat slary was $463,000 last year and will be about $502,000 this year.
A few key conditions:
- The salary is the same amount whether the player is in the NBA or the G-League. Its 1/2 the minimum annual salary of a normal player.
- The player can play up to 50 games in the NBA - he can play more but then the team must convert him to a full contract at that point, and would then need to clear a normal roster spot for them,
- The contract is not-guaranteed, so the players can be cut at any point, and will only receive their pro-rated salary up to that point.
- I suspect there is some guarantee however that is granted to give some incentive to sign the contract initially. Just a guess but based on other pre-season contracts to show up at NBA camp probably like $50,000.
The old system was a G-League guarantee of $75,000 (which is more than the G-League average of closer to $40-$50K). The player could only play 45 days in the NBA, which would then earn them an extra $204,000 beyond that $75K (if they played 45 days). If a team wanted them more than 45 days, they would need to be converted to a full contract for the rest of the season.
The $75,000 however was guaranteed based on my understanding,
So the new system provides much more to the player if they stay in a team's system the entire year ($502K vs $75K). So its much better that way. But there are a few disadvantages to the new system:
- The older system allows the player to get to a full NBA contract much earlier (45 days vs 50 games). That being said the expectation of a 2 way playe is to develop in the team's system and not really play much NBA that first year.
- The older system was a guaranteed $75,000 once you signed it. Technically Buddy B could be cut in pre-season and earn nothing -- although that is why I said above teams probably give some guarantee incentive to get you to sign the deal at first.