What is an Undrafted Free Agent in the NBA?

Here is everything to know about what undrafted free agents are and how their contracts differ from their drafted counterparts.

Jun 25, 2015; Brooklyn, NY, USA; General view of the stage before the start of the 2015 NBA Draft at Barclays Center. Mandatory Credit: Brad Penner-USA TODAY Sports / Brad Penner-USA TODAY Sports

While scouts and general managers have historically assessed, projected and selected the most talented players available with their NBA draft picks, in hindsight, the players selected on draft night are not always the 60 best prospects of that particular year.

Some players are left undrafted once the big selection event is all said and done, yet go on to have successful playing careers at the professional level. These players, faced with an uphill battle to prove themselves and make a roster with virtually no guarantee of a roster spot, must go forth with grit and determination to prove themselves and create a lasting career.

Here's what an undrafted free agent is and everything to know about how their role in the roster-building puzzle works on both the player and team side after draft night.

What is an undrafted free agent?

When players are selected in the NBA Draft, their "rights" are held by the team that selects them (unless they are traded to another team). Those rights give the team the exclusive opportunity to negotiate a contract with the rookie to make them an official member of their team. Those players are restricted to signing with just that one team.

But there are always more players that are eligible for the draft than there are picks. What happens to the players left? They are known as undrafted free agents.

An undrafted free agent is a player who declared for the NBA draft and is eligible to be selected, but is not picked in any of the 60 selection slots that make up the two rounds of the draft.

Players who are not selected in the draft can still seek employment with NBA teams, and such players are one of the four kinds of players officially recognized in the collective bargaining agreement recognized by the NBA and NBPA. The CBA also refers to such players as "Non-Draft Rookies."

In years past, undrafted free agents have made for some of the most heartbreaking moments on draft night, but also set up for some of the most spectacular stories for those that make the climb. Christian Wood was left in tears in 2015, but has now played nine NBA seasons and been top-10 in voting for the Most Improved Player of the Year Award and Sixth Man of the Year two times each throughout his NBA career.

Who can sign an undrafted free agent? When can they be signed?

Any team can select an undrafted free agent, presuming that the terms they agree to with the player don't violate any other CBA rules. Thus, players technically have more flexibility as undrafted free agents, but also far fewer guarantees of making a final roster.

Section 1 of the CBA stipulates that an undrafted free agent is, "is free to negotiate a Player Contract with any Team beginning immediately following the conclusion of the NBA Draft for which he was first eligible and was not selected." Therefore, players can sign with any team as soon as the draft is over.

In most years, the draft took place all in one night, however, starting in 2024, the draft will be held over two nights, meaning players will have to wait the full two days before they find out if they were selected or not and if they can sign as a free agent.

How do contracts differ for undrafted free agents compared to drafted rookies?

When a team signs a first-round rookie, teams sign him to a contract tied to the NBA's salary cap that is a certain percentage of the overall cap, scaled based on which pick they're selected with. There is a negotiation that can make the final figure of the salary slightly lower than the cap hold placed on the player until they're signed to an official contract, but the upper and lower bounds are dictated by the CBA.

For undrafted free agents, their earning potential is much more limited, and their contracts tend to be much smaller in total dollar figures.

If an undrafted free agent is signed to a full NBA contract, the minimum value of such a contract in the 2024-25 season is a little over $1 million, as determined by the CBA. It can be higher, as well. For comparison, the last pick in the first round of the 2024 draft (30th overall) will make about $2 million in his rookie season.

More commonly, though, undrafted free agents are signed to two-way deals which allow teams to play them on their G League team, or bring them up for a limited number of days throughout the year on the NBA roster. They are developmental in nature with lots of flexibility for NBA teams, both in function and in cost.

In 2024/25, the value of a two-way contract is expected to be about $580,000.

Who are the best undrafted free agents of all-time?

Ben Wallace is widely regarded as the best undrafted NBA player of all-time. Other notable names like John Starks, Bruce Bowen, and Udonis Haslem are among those who have had success in the NBA as undrafted players.