Inside the NBA’s sign-and-waive game, and why it actually makes sense

Every October, you’ll see it all over the NBA’s transaction wire — players being signed and waived on the same day. It happens so often that you start to wonder if front offices are just doing busywork.

But these quick-turnaround deals actually serve a purpose, and sometimes, they can mean real money or opportunity for the players involved.

In short, there are two big reasons this happens:

1. To secure a player’s G League rights

Teams are allowed to designate up to four “affiliate players” before the regular season begins. Those players, once waived, can then join that team’s G League affiliate automatically — but only if their rights aren’t already held by another G League club.

That’s why teams sign certain undrafted rookies or fringe veterans during camp. They’ll practice for a day or two, get waived, and then head to the G League once the season starts. It’s not about making the NBA roster; it’s about keeping them in the organization’s system.

2. To pay out an Exhibit 10 bonus

The other reason is financial. Many of these players sign Exhibit 10 contracts, which are one-year, non-guaranteed deals that can be converted into a two-way contract or simply act as a bonus gateway.

If a player is waived and then spends at least 60 days with the team’s G League affiliate, he can earn a bonus of up to $85,300. For players whose base G League salary is reportedly around $40,000 to $45,000, that’s a massive bump and can sometimes double their earnings for the season.

It’s also a win for teams, who get to reward loyalty and incentivize players to stay in their developmental pipeline, rather than heading elsewhere (such as overseas).

So when you see a string of “Team X signs and waives Player Y” in the coming weeks, it’s not just bookkeeping. It’s part of how NBA teams build and maintain depth below the surface — and how players keep a steady paycheck while chasing the big league dream.