Indiana Pacers forward Aaron Nesmith has signed a two-year, $40.4 million contract extension with the franchise, according to Shams Charania. The new deal includes a trade kicker and secures one of Indiana’s top perimeter defenders through the 2028–29 NBA season.
The extension gives Nesmith the maximum salary allowed via extension, rewarding his consistent two-way play and pivotal role during the team’s 2025 Finals run. He is now under contract for four more seasons, including the final year of his current three-year, $33 million deal.
Nesmith, 26, emerged as a key starter for head coach Rick Carlisle during Indiana’s deep postseason push. He started all 23 playoff games, averaging 12.7 points, 5.7 rebounds, and 0.9 steals per game while shooting a remarkable 49.2% from three-point range — the highest mark in NBA playoff history for a player with at least 100 three-point attempts, per ESPN Research.
The former 14th overall pick in the 2020 NBA Draft has developed into a reliable two-way wing after early stints with the Boston Celtics. His versatility on both ends has made him a valuable complement alongside Tyrese Haliburton and Pascal Siakam in Indiana’s starting lineup.
Last season, Nesmith averaged 12.0 points, 4.0 rebounds, and 0.8 steals across 45 regular-season appearances while shooting 50.7% from the field, 43.1% from beyond the arc, and 91.3% from the free-throw line.
Financially, Indiana remains above the luxury tax line but comfortably below the league’s first apron. The team’s total cap figure stands at $186.2 million—approximately $5.9 million over the tax threshold—while staying $13.6 million under the first apron.
The Pacers’ front office, led by general manager Chad Buchanan, continues to prioritize continuity following last season’s Eastern Conference title run. With core players Haliburton, Siakam, Andrew Nembhard, and Obi Toppin all locked into long-term deals, the franchise has preserved its core stability heading into the 2025–26 campaign.
