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Pacers Sign Aaron Nesmith to Two-Year, $40.4 Million Extension

The reported deal provides cost certainty for a franchise intent on keeping its Finals core.

Overview

  • Indiana announced a multi-year extension Tuesday for Aaron Nesmith, which multiple outlets report is a two-year, $40.4 million agreement that includes a trade kicker.
  • Nesmith will earn $11 million in each of the next two seasons, with the extension set to begin in 2027–28 at a projected $19.4 million and $21 million in 2028–29.
  • The contract represents the maximum salary Indiana could offer via a two-year veteran extension; a three-year max of up to $62.9 million was possible but not pursued.
  • Nesmith emerged as a top 3-and-D starter during Indiana’s 2025 Finals run, shooting 49.2% from three in the playoffs—the best single-postseason mark for players with at least 100 attempts—and starting all 23 games.
  • Team president Kevin Pritchard framed the move as part of retaining the Pacers’ core, with seven rotation players now under contract through 2027–28 after the former Celtics first-rounder’s 2022 trade to Indiana.