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How do overseas basketball contracts work?

By McKinley Malbrough III, J.D., MS-HRM · Certified WNBA player agent

Published September 26, 2026. Last updated September 26, 2026.

Is the salary net or gross?

It depends on the contract, and it is the first line to read. Many clubs in Europe and elsewhere quote salary as net: the number the player receives, with the club responsible for local income tax on top. A gross salary is the number before local tax, and in a high-tax country the difference is a large share of the figure. Two offers with the same headline number can be very different offers. If the contract does not say "net of all taxes" in plain words, ask the club to add it, or get the gross figure converted before comparing offers.

What usually comes with the salary?

• An apartment, and who pays utilities.
• A car, and who pays insurance, fuel and fines.
• Round-trip flights home, how many, and in which class.
• Bonuses for team results and individual awards, with the exact trigger written down.
• Medical coverage, and who pays if an injury needs care at home.

Every one of these is negotiable, and every one is worth money. A contract that lists them in detail avoids the most common midseason arguments.

How and when do players get paid?

Most contracts pay in monthly installments over the season, on a fixed date each month. Late payment is a known risk abroad, so the contract should state the dates, a short grace period, and what happens when a payment is late: a daily penalty, the right to stop playing, or the right to leave with the remaining salary owed. A player who stops playing without a clause allowing it can end up the party in breach.

How much can an agent charge?

FIBA caps an agent's remuneration at 10% of the value of the player contract (article 3-327 of the FIBA Internal Regulations, Book 3). An agent contract can run no longer than two years, and either side can end it with 30 days' written notice (article 3-326). In an international transfer the agent must hold a FIBA license, or FIBA can refuse the letter of clearance. Many clubs pay the agent's fee directly; the contract should say who pays and how much, so it never comes out of the player's net salary by surprise.

What happens when a club does not pay?

Most overseas contracts include an arbitration clause sending disputes to the Basketball Arbitral Tribunal, known as BAT, which FIBA established to resolve disputes between clubs, players and agents simply, quickly and inexpensively (article 3-332). BAT sits in Geneva, runs in English, and a single arbitrator decides the case; the award is final and binding (articles 3-333 and 3-335). The standard clause FIBA recommends has the arbitrator decide ex aequo et bono, on general fairness rather than one country's law. If a contract does not send disputes to BAT, find out exactly where a claim would be heard before signing.

What about NBA and WNBA outs?

Players who might get a call from the NBA or need to report to a WNBA camp negotiate an out clause: a window in which they can leave for the league, sometimes with a buyout paid by the player or the new team. The window dates and the buyout amount must be exact. With the new WNBA salary scale, more players can choose shorter overseas stints, and those dates now drive the whole contract. On the NBA side, compare any overseas offer with a two-way contract before deciding.

Do Americans still pay U.S. tax on overseas pay?

Yes, the U.S. taxes its citizens on worldwide income, so a player abroad still files a U.S. return. A player whose tax home is abroad and who meets the bona fide residence or physical presence test can exclude up to $132,900 of foreign earned income for 2026 on Form 2555, plus a housing amount, per the IRS. A player who spends much of the year back home for a WNBA season or summer training may not qualify for the full exclusion; the foreign tax credit is the other route. This is where an athlete-focused CPA pays for the fee. College players heading abroad should also settle their final NIL tax year first.

The overseas contract checklist

Net or gross, in writing. Every benefit listed with who pays for what. Payment dates, a late-payment remedy, and the right to stop playing if the club stops paying. The agent fee, who pays it, and the agent's FIBA license number. A BAT clause. Exact out-clause windows and buyout amounts. Then confirm your clearance can be issued before the season starts.