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Why NBA Teams Frequently Sign and Waive Players in a Single Day

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Every October, the NBA’s transaction log fills with listings that read almost identical: a team signs a player and then releases him within hours. While the moves can look like administrative busywork, league rules give front offices a clear incentive to execute these rapid-fire deals.

Protecting G League rights

NBA clubs may designate up to four “affiliate players” before the regular season opens. Once those players are waived, they automatically join the organization’s NBA G League affiliate—provided no other G League team already holds their rights. Signing an undrafted rookie or fringe veteran for a day keeps that prospect inside the system for continued development.

Triggering an Exhibit 10 bonus

Many of the one-day contracts are Exhibit 10 agreements, one-year, non-guaranteed deals that carry a potential cash bonus. If a player is waived and then spends at least 60 days with the club’s G League affiliate, he can collect up to $85,300. Considering standard G League salaries hover between $40,000 and $45,000, the Exhibit 10 payment can nearly double a player’s income.

The arrangement also benefits teams, rewarding players who remain in their developmental pipeline and discouraging a mid-season jump to another league, including international options.

So when the coming weeks bring a flood of “signed and waived” notices, it is less about roster churn and more about strategic depth building—and an important paycheck for athletes still chasing a full-time NBA job.

Source: Hoops Wire

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