The glossary

The business of basketball, defined

235 terms that decide contracts, pay and careers, from the cap sheet to the clearinghouse. Not how to run a pick-and-roll; what a player signs, earns and owes. Written by McKinley Malbrough III, J.D., MS-HRM, certified WNBA player agent and former certified NBA agent. Terms linked to the library go deeper.

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A

Activation Endorsements and brand: The events and promotions that bring a sponsorship to life.
Affiliate League business and labor: The G League team connected to a specific NBA franchise.
Agent fee cap Agents and representation: The limit on what an agent can charge. The NBPA caps it at 4% of the playing contract; FIBA caps it at 10%. Read: How do overseas basketball contracts work?
Agent registration Agents and representation: A state requirement that agents register before contacting student-athletes.
Alston award College, NIL and revenue sharing: Education-related payments schools may give athletes after the Supreme Court’s 2021 decision in NCAA v. Alston.
Annuity Money, taxes and planning: A contract paying a steady income over time, sometimes used to spread out a lump sum.
Appearance fee Endorsements and brand: Pay for showing up at an event, signing or camp.
Arbitration clause Contract language: A clause sending disputes to arbitration rather than court. Read: How do overseas basketball contracts work?
Assignment clause Contract language: Terms on whether a contract can be transferred to another party, such as in a trade.

B

Back damages College, NIL and revenue sharing: The House settlement payments to current and former athletes for past NIL restrictions.
Base year compensation NBA cap and contracts: A rule that can reduce a recently re-signed player’s outgoing salary value in trades for a limited time.
Basketball Arbitral Tribunal International and FIBA: BAT. FIBA’s arbitration body in Geneva for contract disputes between clubs, players and agents. Awards are final and binding. Read: How do overseas basketball contracts work?
Basketball Champions League International and FIBA: The FIBA-run European club competition.
Basketball related income NBA cap and contracts: BRI. The pool of league revenue the NBA and players divide under the collective bargaining agreement, and the basis for the cap.
Bi-annual exception NBA cap and contracts: An exception a team can use every other year to sign a player up to a set amount, unavailable above the first apron.
Bird rights NBA cap and contracts: The right to re-sign your own free agent above the cap, up to the maximum, after he has played three seasons without changing teams as a free agent.
Brand ambassador Endorsements and brand: A longer-term endorsement where the athlete represents a brand across campaigns.
Business manager Agents and representation: The person or firm handling an athlete’s bill paying, budgeting and financial administration.
Buyout NBA cap and contracts: A negotiated release where a player gives back part of his remaining salary in exchange for freedom to sign elsewhere.
Buyout clause Contract language: A set amount that lets a player or new team end a contract early. Read: How do overseas basketball contracts work?

C

Cap hit NBA cap and contracts: The amount of a contract that counts against a team’s salary cap in a given season.
Cap hold NBA cap and contracts: A placeholder charge against a team’s cap for an unsigned player it still holds rights to, such as a free agent or an unsigned first-round pick. Read: How much do NBA rookies make in 2026-27?
Cap space NBA cap and contracts: The room between a team’s payroll and the salary cap, which it can use to sign free agents outright.
Category exclusivity Contract language: Exclusivity limited to one product category, such as footwear or sports drinks.
Certified agent Agents and representation: An agent certified by a players’ union, which is required to negotiate contracts for that league’s players.
Collective College, NIL and revenue sharing: A donor-funded organization that pays athletes at a particular school for NIL activities.
Collective bargaining agreement League business and labor: The contract between a league and its players’ union that sets pay, rules and benefits for everyone. Read: How much do WNBA players make under the new CBA?
College Sports Commission College, NIL and revenue sharing: The body created by the power conferences to enforce the House settlement rules, including the cap and NIL deal review. Read: How does revenue sharing work for college basketball players?
Commissioner League business and labor: The league’s chief executive, with authority over discipline and league operations.
Confidentiality clause Contract language: A term barring disclosure of contract details.
Conflict of interest Agents and representation: A situation where an agent’s duties pull in opposite directions, such as representing a coach and a player on the same team.
Contingency Contract language: A condition that must be met before a contract or payment takes effect.
Contract advisor Agents and representation: The union’s formal title for a certified agent in some leagues.
Conversion NBA cap and contracts: Moving a two-way player to a standard NBA contract so he can be on the 15-man roster and play in the postseason. Read: What is a two-way contract in the NBA?
Core designation WNBA: The WNBA’s version of a franchise tag, letting a team keep a veteran free agent by offering a set salary. Read: How much do WNBA players make under the new CBA?
Cost of attendance College, NIL and revenue sharing: The full estimated cost of being a student, including expenses beyond tuition, which schools can cover in aid.

D

Dead money NBA cap and contracts: Salary a team still owes and counts against its cap for a player no longer on the roster.
Deferred compensation NBA cap and contracts: Salary earned in one season but paid later, subject to league limits.
Deliverables Endorsements and brand: The specific posts, appearances or content an athlete owes under a deal.
Designated player NBA cap and contracts: A player who meets the criteria for a larger rookie-scale or veteran extension, often tied to All-NBA or MVP honors.
Developmental contract WNBA: A WNBA roster contract for players in development, paying $750 for each week of the regular season. Read: How much do WNBA players make under the new CBA?
Disability insurance Money, taxes and planning: Coverage that replaces income if an injury ends or pauses a career.
Disciplinary fine League business and labor: A penalty a league or team imposes on a player for conduct or rules violations.
Domestic league International and FIBA: A country’s national club league, such as Spain’s ACB or Turkey’s BSL.
Draft combine Draft and rookie deals: The pre-draft event where prospects are measured, tested and interviewed by teams.
Draft rights Draft and rookie deals: A team’s exclusive right to sign a player it drafted, which it can hold, trade or renounce.
Draft-and-stash Draft and rookie deals: Drafting a player who keeps playing abroad while the team holds his rights for later. Read: How do overseas basketball contracts work?
Duty days Money, taxes and planning: The days an athlete works in a state, used to allocate jock tax.

E

Early Bird rights NBA cap and contracts: A lesser form of Bird rights earned after two seasons, allowing a team to re-sign its player above the cap up to a set limit.
Early entry Draft and rookie deals: Declaring for the draft before eligibility would otherwise begin, subject to the league’s age and withdrawal rules.
Early termination option NBA cap and contracts: Lets a player end a contract before its final years and enter free agency.
Eligibility clock College, NIL and revenue sharing: The limit on how many seasons an athlete can compete in college, and the window in which they must use them.
Endorsement Endorsements and brand: A paid agreement where an athlete promotes a brand or product.
EPIC provision Draft and rookie deals: Exceptional Performance on Initial Contract. Lets a WNBA rookie-scale player who earns All-WNBA or MVP reach higher salaries in year four. Read: How much does a WNBA rookie make in 2026?
Equity deal Endorsements and brand: Taking ownership in a company as part or all of the compensation for an endorsement.
Escrow NBA cap and contracts: A share of each NBA player’s salary withheld during the season and trued up against league revenue once the split is calculated. Read: How much do NBA rookies make in 2026-27?
Estimated taxes Money, taxes and planning: Quarterly tax payments owed on income with no withholding, including NIL money. Read: Do college athletes pay taxes on NIL money?
EuroCup International and FIBA: The second-tier European club competition run by EuroLeague Basketball.
EuroLeague International and FIBA: Europe’s top club competition, run by a company owned largely by its member clubs.
Ex aequo et bono International and FIBA: Deciding a dispute on general fairness rather than one country’s law. The standard basis for BAT arbitration. Read: How do overseas basketball contracts work?
Exclusivity Contract language: A term barring the athlete from working with competitors of the sponsor or party.
Exhibit 10 NBA cap and contracts: A one-year, non-guaranteed NBA contract that can be converted to a two-way deal, often carrying a bonus if the player joins the team’s G League affiliate. Read: What is a two-way contract in the NBA?
Expansion League business and labor: Adding new teams to a league, which brings expansion fees and an expansion draft.
Expansion draft WNBA: A draft where new teams select unprotected players from existing rosters.
Extension NBA cap and contracts: A new contract signed before the current one ends, adding years and usually a raise.

F

Fair market value Money, taxes and planning: What an item or service would sell for between unrelated parties. Non-cash NIL benefits are taxed at it. Read: Do college athletes pay taxes on NIL money?
Federation of origin International and FIBA: The federation a player is leaving in an international transfer. It has six days to respond to a clearance request. Read: What is a FIBA letter of clearance?
Fee-only advisor Money, taxes and planning: A financial advisor paid only by the client, not by commissions on products sold.
FIBA International and FIBA: The International Basketball Federation, which governs the game worldwide and sets the rules for international transfers. Read: What is a FIBA letter of clearance?
FIBA Information System International and FIBA: The online platform where federations request, answer and track letters of clearance. Read: What is a FIBA letter of clearance?
FIBA-Licensed Agent International and FIBA: An agent licensed by FIBA to handle international transfers. Using an unlicensed agent can block a clearance. Read: What is a FIBA letter of clearance?
Fiduciary advisor Money, taxes and planning: An advisor legally required to put the client’s interests first.
Fiduciary duty Agents and representation: An agent’s legal obligation to act in the client’s best interest.
First apron NBA cap and contracts: A payroll level above the tax line. Teams over it lose access to certain exceptions and trade flexibility under the 2023 NBA collective bargaining agreement.
First registration International and FIBA: A player never before licensed by any federation. No clearance fee is charged. Read: What is a FIBA letter of clearance?
Force majeure Contract language: A clause excusing performance when events outside anyone’s control, such as a pandemic, prevent it.
Foreign earned income exclusion International and FIBA: The U.S. rule letting qualifying Americans abroad exclude up to $132,900 of foreign earned income for 2026. Read: How do overseas basketball contracts work?
Foreign tax credit International and FIBA: A U.S. credit for income tax paid to another country, an alternative to the foreign earned income exclusion. Read: How do overseas basketball contracts work?
Form 1099-MISC Money, taxes and planning: The form reporting royalties and other income. Some schools use it for revenue-share payments. Read: Do college athletes pay taxes on NIL money?
Form 1099-NEC Money, taxes and planning: The form reporting non-employee pay. For payments received in 2026, it is required at $2,000 or more from one payer. Read: Do college athletes pay taxes on NIL money?
Form W-2 Money, taxes and planning: The form reporting wages from an employer, such as a professional team salary.
Franchise valuation League business and labor: The estimated market value of a team, driven by media rights, arena revenue and market size.
FTC disclosure Endorsements and brand: The Federal Trade Commission requirement to clearly disclose paid endorsements, such as with #ad.

G

G League League business and labor: The NBA’s development league, where two-way players and assigned players compete. Read: What is a two-way contract in the NBA?
Governing law Contract language: The law of the jurisdiction that controls how a contract is interpreted.
Grant-in-aid College, NIL and revenue sharing: An athletic scholarship covering tuition, fees, room, board and books. It is separate from revenue sharing.
Grievance League business and labor: A formal dispute over the labor agreement, usually decided by an arbitrator.
Gross salary International and FIBA: Salary before tax. In a high-tax country it is much larger than what the player receives. Read: How do overseas basketball contracts work?
Group licensing College, NIL and revenue sharing: Licensing the NIL of many athletes together, such as for video games or team merchandise.
Guarantee Contract language: A promise that salary will be paid even if the player is released, as defined in the contract.
Guarantee date NBA cap and contracts: The date a non-guaranteed or partially guaranteed salary becomes owed. Players are often waived just before it.
Guaranteed salary NBA cap and contracts: Salary owed even if the player is waived, subject to the terms of the guarantee.

H

Hard cap NBA cap and contracts: A payroll ceiling a team cannot exceed for the rest of the season. In the NBA, certain transactions trigger a hard cap at an apron.
Hardship contract WNBA: A short-term WNBA contract a team signs when injuries leave it below the required number of players.
Hardship exception NBA cap and contracts: Lets a team add a player beyond normal roster limits when injuries or illness leave it short of available players.
Home-grown player International and FIBA: A player developed in a country’s youth system, a category some leagues protect with roster quotas.
House settlement College, NIL and revenue sharing: The 2025 settlement of House v. NCAA that allowed schools to pay athletes directly and set up the revenue-sharing cap. Read: How does revenue sharing work for college basketball players?
Housing provision WNBA: A WNBA benefit covering or providing player housing during the season, defined in the collective bargaining agreement.

I

Import player International and FIBA: A foreign player on a club roster. Many leagues limit how many imports a team can carry.
Incentive NBA cap and contracts: A bonus paid only if a condition is met. How it counts against the cap depends on whether it is deemed likely or unlikely.
Indemnification Contract language: A promise to cover another party’s losses from certain claims.
Injury clause Contract language: Terms covering pay and obligations if the player is injured, including whether salary is protected.

J

Jock tax Money, taxes and planning: State and city income tax on athletes for games played in that jurisdiction. Read: How much do NBA rookies make in 2026-27?

L

Late payment penalty Contract language: A charge owed when a club or sponsor pays late, a key protection in overseas deals. Read: How do overseas basketball contracts work?
Letter of clearance International and FIBA: A FIBA certificate confirming a player is free to transfer and a new national federation may license them. The standard fee is CHF 250. Read: What is a FIBA letter of clearance?
Letter of intent Agents and representation: In college, a signed commitment to a school; in business, a non-binding outline of deal terms.
Licensing Endorsements and brand: Granting permission to use a name, image or logo in exchange for payment.
Likely bonus NBA cap and contracts: An incentive the player achieved the prior season, so it counts against the cap in advance.
Liquidated damages Contract language: A pre-agreed amount owed if a party breaches, instead of proving actual losses.
Loan International and FIBA: A temporary transfer of a player to another club, common in international basketball.
Loan-out company Money, taxes and planning: A company an athlete owns that contracts their services, sometimes used for endorsement income.
Lockout League business and labor: An owner-initiated work stoppage after a labor agreement expires.
Long-form agreement League business and labor: The complete written version of a deal after the term sheet.
Loss-of-value insurance Money, taxes and planning: Coverage that pays if an injury lowers a prospect’s draft position or contract value.
Lottery Draft and rookie deals: The drawing that sets the order of the top picks among non-playoff teams. In the WNBA, lottery picks are also the first six selections.
Lottery protection Draft and rookie deals: A condition on a traded pick that keeps it with the original team if it lands in a protected range.
Luxury tax NBA cap and contracts: A penalty a team pays for each dollar of payroll above the tax line at season end, with rates that rise the further over it goes and for repeat taxpayers.

M

Marketing fee Agents and representation: The commission an agent or marketing firm charges on endorsements, separate from and usually higher than the contract fee.
Marketing representative Agents and representation: A professional who secures endorsement and NIL deals, often separate from the playing-contract agent.
Maximum salary NBA cap and contracts: The most a player can earn in a season, set as a percentage of the cap that rises with years of service.
Media day Endorsements and brand: A league or team event where players do required interviews and photo shoots.
Media rights Endorsements and brand: The rights to broadcast or stream games, and the largest revenue source for leagues and conferences.
Mid-level exception NBA cap and contracts: An exception letting a team over the cap sign free agents up to a set starting salary. The amount depends on whether the team is under or over the aprons.
Minimum salary NBA cap and contracts: The lowest salary a player can be paid, scaled by years of service. The 2026-27 NBA rookie minimum is $1,357,763. Read: How much do NBA rookies make in 2026-27?
Minimum salary exception NBA cap and contracts: Lets any team sign a player to a minimum contract even when over the cap.
Morals clause Contract language: A clause letting a team or sponsor end a deal over conduct that damages its reputation.
Moratorium NBA cap and contracts: The early days of free agency when deals can be agreed to but not officially signed.
Most favored nation Contract language: A promise that a party will get terms at least as good as anyone else in a similar deal.

N

National member federation International and FIBA: A country’s basketball governing body within FIBA, such as USA Basketball, which licenses players to play there. Read: What is a FIBA letter of clearance?
Naturalized player International and FIBA: A player who acquired a country’s nationality after age 16. FIBA allows one per national team roster.
NBPA League business and labor: The National Basketball Players Association, the NBA players’ union, which also certifies agents.
Net pay Money, taxes and planning: What lands in the account after taxes, escrow, fees and withholding.
Net salary International and FIBA: An overseas salary stated after local income tax, with the club responsible for the tax. Read: How do overseas basketball contracts work?
NIL College, NIL and revenue sharing: Name, image and likeness. An athlete’s right to be paid for commercial use of their identity. Read: How does revenue sharing work for college basketball players?
NIL disclosure College, NIL and revenue sharing: A school or state rule requiring athletes to report NIL deals, in addition to NIL Go reporting.
NIL Go College, NIL and revenue sharing: The College Sports Commission clearinghouse, built with Deloitte, where Division I athletes report third-party NIL deals of $600 or more. Read: How does revenue sharing work for college basketball players?
No-trade clause NBA cap and contracts: A clause requiring the player’s consent to be traded. Rare in the NBA and limited to players meeting service requirements.
Non-Bird rights NBA cap and contracts: The most limited re-signing right, earned after one season, allowing a modest raise over the player’s prior salary.
Non-guaranteed contract Contract language: A contract that can be terminated without owing the remaining salary.

O

Offer sheet NBA cap and contracts: A contract a restricted free agent signs with another team, which his original team then has a window to match.
Offset Contract language: A rule reducing what a former team owes a waived player by part of what he earns from a new team.
Opt-out League business and labor: A clause letting either side end a collective bargaining agreement early. The 2026 WNBA agreement has one after 2031. Read: How much do WNBA players make under the new CBA?
Out clause International and FIBA: A window letting an overseas player leave for the NBA or WNBA, sometimes with a buyout. Read: How do overseas basketball contracts work?

P

Partial guarantee NBA cap and contracts: A contract where only part of the salary is guaranteed, with the rest becoming guaranteed on set dates or conditions.
Pay-for-play College, NIL and revenue sharing: Payment for enrolling at or playing for a school, disguised as an NIL deal. The clearinghouse is designed to flag it.
Payment schedule Contract language: The dates and amounts when salary or fees are paid. Read: How do overseas basketball contracts work?
Pension Money, taxes and planning: A league retirement benefit earned through years of service.
Performance bonus Contract language: Pay triggered by stats, awards or team results.
Physical exam Contract language: A medical exam a contract may depend on. Failing it can void the deal.
Pick swap Draft and rookie deals: A trade term giving one team the right to exchange draft positions with another in a future draft.
Player option NBA cap and contracts: A final contract year the player can choose to accept or decline for free agency.
Player share NBA cap and contracts: The percentage of league revenue guaranteed to players in aggregate under a collective bargaining agreement.
Players association financial program Money, taxes and planning: Education and vetting resources a players’ union offers members on money management.
Power of attorney Agents and representation: A legal document letting someone act on another’s behalf in specific matters. Players should grant it narrowly, if at all.
Pre-draft workout Draft and rookie deals: A private tryout a prospect does for a single team before the draft.
Prioritization WNBA: WNBA rules requiring players to report for the WNBA season on time, which shape when overseas contracts must end. Read: How do overseas basketball contracts work?
Protected salary Draft and rookie deals: Salary guaranteed against release. WNBA lottery picks now have their first-year salary fully protected. Read: How much does a WNBA rookie make in 2026?

Q

Qualifying offer NBA cap and contracts: A one-year offer a team extends to make its player a restricted free agent. The player can accept it or pursue offer sheets.

R

Range of compensation College, NIL and revenue sharing: The NIL Go test of whether a deal’s pay is reasonable compared with similar deals. Read: How does revenue sharing work for college basketball players?
Ratification League business and labor: The vote by players and owners that makes a negotiated agreement official. Read: How much do WNBA players make under the new CBA?
Redshirt College, NIL and revenue sharing: A season where an athlete practices but does not compete, preserving a year of eligibility.
Registered investment advisor Money, taxes and planning: A firm registered with the SEC or a state to give investment advice.
Renewal option Contract language: A right to extend a contract for another term on set conditions.
Restricted free agent NBA cap and contracts: A player whose old team can match any offer sheet he signs, usually after a rookie-scale contract and a qualifying offer. Read: How much do NBA rookies make in 2026-27?
Revenue sharing (pro) WNBA: A system tying player pay to a share of league revenue. The WNBA adopted it for the first time in 2026. Read: How much do WNBA players make under the new CBA?
Revenue split League business and labor: How league income is divided between players and owners under a labor agreement.
Revenue-share agreement College, NIL and revenue sharing: The contract between an athlete and a school covering direct payments under the cap, often including a license of the athlete’s NIL. Read: How does revenue sharing work for college basketball players?
Revenue-sharing cap College, NIL and revenue sharing: The most a participating school can pay its athletes directly in a year: about $21.58 million per school for 2026-27. Read: How does revenue sharing work for college basketball players?
Right of first negotiation Contract language: A right to negotiate before others when a contract or deal expires.
Right of first refusal NBA cap and contracts: A team’s right to match an outside offer to its player before he can leave, as with restricted free agency.
Right of publicity Endorsements and brand: A person’s legal right to control commercial use of their identity.
Rookie scale Draft and rookie deals: The fixed salary assigned to each first-round draft slot, tied to the cap. NBA teams may sign picks for 80% to 120% of scale. Read: How much do NBA rookies make in 2026-27?
Rookie-scale adjustment WNBA: The 2026 raise of existing WNBA rookie contracts to the new scale, reduced 4% per year since signing. Read: How much does a WNBA rookie make in 2026?
Rookie-scale extension NBA cap and contracts: An extension a first-round pick can sign in the offseason before the fourth year of his rookie contract. Read: How much do NBA rookies make in 2026-27?
Room exception NBA cap and contracts: A smaller exception available to a team that used cap space and dipped below the cap.
Rose Rule NBA cap and contracts: Informal name for the provision that lets a player coming off a rookie deal earn a higher maximum extension by meeting award criteria.
Roster limit College, NIL and revenue sharing: The cap on athletes per team that replaced scholarship limits under the House settlement.
Roster minimum NBA cap and contracts: The fewest standard contracts a team must carry during the season.
Royalty Endorsements and brand: A percentage of sales paid to the athlete, common in signature products.
Runner Agents and representation: A person who steers players toward an agent, sometimes illegally paying players or families to do so.

S

Salary arbitration League business and labor: A process where a neutral arbitrator sets salary. Not used in the NBA or WNBA, but common in other sports.
Salary cap NBA cap and contracts: The league-set limit on team payroll. The NBA cap is soft: teams can exceed it through exceptions. For 2026-27 it is $164,961,000. Read: How much do NBA rookies make in 2026-27?
Salary floor NBA cap and contracts: The minimum team payroll. A team below it pays the shortfall to its players.
Salary matching NBA cap and contracts: The rule requiring a team over the cap to take back salary within a set range of what it sends out in a trade.
Schedule C Money, taxes and planning: The tax form where a self-employed person reports business income and expenses. Read: Do college athletes pay taxes on NIL money?
Second apron NBA cap and contracts: A higher payroll level with the strictest limits in the NBA, including restrictions on aggregating salaries in trades and on future draft picks.
Second-round contract Draft and rookie deals: A deal for a second-round pick. There is no scale and no required guarantee, so every term is negotiated. Read: How much do NBA rookies make in 2026-27?
Self-employment tax Money, taxes and planning: Social Security and Medicare tax paid by self-employed people, 15.3% of net earnings. It applies to most NIL income. Read: Do college athletes pay taxes on NIL money?
Shared Basketball Revenue WNBA: The combined prior-year league and team revenue that sets the WNBA cap under the 2026 agreement: 20% of it goes to the cap. Read: How much do WNBA players make under the new CBA?
Shoe deal Endorsements and brand: An endorsement with a footwear company, often the largest outside income for a player.
Sign-and-trade NBA cap and contracts: A transaction where a team re-signs its own free agent and immediately trades him, often so the player can join a team that lacks cap space.
Signature shoe Endorsements and brand: A shoe line named for and designed around one athlete.
Signing bonus Contract language: A payment for signing, usually paid up front.
Soft cap NBA cap and contracts: A cap teams may exceed using exceptions, such as Bird rights or the mid-level exception, instead of a hard ceiling no payroll can pass.
Solidarity fee International and FIBA: Compensation of up to CHF 3,000 FIBA can require for clubs that developed a young player who transfers internationally. Read: What is a FIBA letter of clearance?
SPARTA Agents and representation: The federal Sports Agent Responsibility and Trust Act, which bars agents from deceptive recruiting of student-athletes.
Standard representation agreement Agents and representation: The union-approved contract between a player and a certified agent, setting fees and terms.
Stretch provision NBA cap and contracts: Lets a team waive a player and spread the remaining guaranteed salary over more seasons, lowering each year’s cap charge.
Strike League business and labor: A player-initiated work stoppage.
Summer league Draft and rookie deals: Offseason exhibitions where rookies and young players compete for roster spots.
Supermax NBA cap and contracts: Informal name for the designated veteran extension, a larger maximum available to players who meet performance criteria such as All-NBA selection.

T

Tampering League business and labor: Improper contact with a player under contract to another team.
Tax line NBA cap and contracts: The payroll level above which an NBA team owes luxury tax.
Team option NBA cap and contracts: A contract year the team can choose to keep or decline. Years three and four of NBA rookie deals are team options. Read: How much do NBA rookies make in 2026-27?
Ten-day contract NBA cap and contracts: A short NBA contract, usually signed in the second half of the season, used to fill a roster spot or evaluate a player.
Term Contract language: The length of a contract.
Term sheet League business and labor: A summary of agreed deal points before the full, long-form contract is written.
Termination clause Contract language: Terms stating when and how either side can end the contract.
Termination notice Agents and representation: The written notice needed to end a representation agreement. FIBA agent contracts can be ended on 30 days’ notice. Read: How do overseas basketball contracts work?
Third-party NIL College, NIL and revenue sharing: An NIL deal paid by a brand, business or collective rather than the athlete’s school. It sits outside the revenue-sharing cap. Read: How does revenue sharing work for college basketball players?
Title IX College, NIL and revenue sharing: The federal law barring sex discrimination in education programs, raised in debates over how revenue sharing is divided across sports.
Trade exception NBA cap and contracts: A credit a team creates by trading away more salary than it takes back. It can later absorb a player’s salary without matching.
Trade kicker NBA cap and contracts: A contract clause paying the player a bonus if he is traded, usually a percentage of remaining salary, subject to the maximum.
Trademark Endorsements and brand: Legal protection for a name, logo or phrase used in commerce.
Training camp contract Draft and rookie deals: A non-guaranteed or partly guaranteed deal to compete for a roster spot in preseason.
Training compensation International and FIBA: Payment to clubs that trained a young player when that player signs a first professional contract elsewhere.
Transfer portal College, NIL and revenue sharing: The NCAA database a player enters to signal intent to transfer and let other schools contact them.
Trust Money, taxes and planning: A legal arrangement holding assets for beneficiaries, often used in estate planning.
Two-way contract NBA cap and contracts: A deal splitting a player between an NBA team and its G League affiliate. In 2026-27 it pays $678,882, half the rookie minimum. Read: What is a two-way contract in the NBA?

U

Undrafted free agent Draft and rookie deals: A prospect not selected in the draft, free to sign with any team.
Uniform Athlete Agents Act Agents and representation: A model law adopted by many states requiring agents to register and follow rules when dealing with student-athletes.
Unlikely bonus NBA cap and contracts: An incentive the player did not achieve the prior season. It does not count against the cap unless it is earned.
Unrestricted free agent NBA cap and contracts: A player whose contract has ended and who can sign with any team without his old team being able to match.
Usage rights Endorsements and brand: How long and where a brand can use content featuring the athlete.

V

Valid business purpose College, NIL and revenue sharing: The NIL Go test asking whether a third-party deal actually uses the athlete’s NIL to promote a business, rather than paying for enrollment or play. Read: How does revenue sharing work for college basketball players?
Veteran minimum NBA cap and contracts: The minimum salary for a player with many years of service. Part of it is reimbursed by the league on one-year deals, which makes veterans cheaper for teams.

W

Wage base Money, taxes and planning: The income ceiling for Social Security tax: $184,500 for 2026. Read: Do college athletes pay taxes on NIL money?
Waivers NBA cap and contracts: The process for releasing a player. Other teams get a window to claim him and his contract before he becomes a free agent.
Withdrawal deadline Draft and rookie deals: The date by which an early-entry candidate must pull his name to keep college eligibility under NCAA rules.
Withholding Money, taxes and planning: Tax taken from pay before it is received.
WNBA minimum salary WNBA: $270,000 to $300,000 in 2026 depending on years of service, rising 4% a year under the 2026 agreement. Read: How much do WNBA players make under the new CBA?
WNBA supermax WNBA: The WNBA’s top salary, $1.4 million in 2026, projected to pass $2.4 million by 2032. Read: How much do WNBA players make under the new CBA?
WNBPA WNBA: The Women’s National Basketball Players Association, the union that bargains the WNBA collective bargaining agreement and certifies agents.
Work permit International and FIBA: Government authorization for a foreign player to be employed in a country. Requirements vary by nation.

Y

Years of service League business and labor: Seasons credited toward minimum salaries, maximums and pensions.

Figures are current as of September 26, 2026, and are sourced in the linked articles. Definitions are general information, not legal, tax or financial advice.