Fans eager for updates on the Lakers might have noticed that the team signed Vincent Valerio-Bodon to an Exhibit-10 contract on Wednesday night, adding him to the training camp roster. Valerio-Bodon, who spent time with the South Bay Lakers last season, was then waived by the team less than 24 hours later.

This move might seem puzzling at first—why sign a player and then waive them so quickly?

The answer lies in the nature of Exhibit-10 contracts. These deals offer players a bonus if they sign with the team’s G League affiliate, in this case, the South Bay Lakers. By signing Valerio-Bodon to this contract and waiving him almost immediately, the Lakers enable him to join the South Bay Lakers with a financial advantage over if he had signed directly with the G League team. This arrangement benefits both parties: the Lakers retain an interested player, and Valerio-Bodon receives a larger incentive to stay with the South Bay Lakers.

Valerio-Bodon is familiar with the G League, having played for the South Bay Lakers last year, where he averaged six points, 2.4 rebounds, and 1.3 assists over 25 games. He also participated in the Lakers’ Summer League, averaging 4.5 points, four rebounds, and 1.3 assists in five games.

The Lakers have made other Exhibit-10 deals this summer as well, signing Kylor Kelley, Quincy Olivari, and Jordan Goodwin to training camp contracts. These players have not yet been waived, but with the Lakers already holding 15 guaranteed contracts, it’s likely they too will face waivers unless they perform exceptionally well and prompt the team to create space on the main roster.

So, the quick sign-and-waive of Valerio-Bodon is a strategic move to benefit from the Exhibit-10 contract’s incentives. Next time someone questions the hard work of vice president of basketball operations Rob Pelinka, you can explain the nuances of these contracts and how they work to everyone’s advantage.