Indiana Pacers Lock Down Aaron Nesmith with $40.4M Extension

Take Game 1 of the Eastern Conference Finals against the Knicks. The Indiana Pacers were down big, and the Madison Square Garden crowd was ready to bury them. Then Nesmith caught fire. He drained eight three-pointers, dropped 30 points, and sparked one of the most improbable comebacks in playoff history. That performance wasn’t a fluke—it was a glimpse of what Nesmith can do when everything clicks.

During last year’s postseason, Nesmith averaged 12.7 points per game while shooting an absurd 49.2% from three-point range. Those aren’t just solid numbers. They’re elite. And they came at a time when the Indiana Pacers needed every single basket.

The Value of Consistency and Defense

Nesmith’s regular-season numbers tell a similar story. Last year, he averaged 12 points and four rebounds per game while shooting 43.1% from beyond the arc. He missed 35 games due to an ankle sprain, which cost him a shot at postseason hardware like an All-Defensive team selection. But when he was on the floor, his impact was undeniable.

Defense is where Nesmith truly separates himself. In an era where wings who can both shoot and defend are worth their weight in gold, Nesmith checks both boxes. He has the size, strength, and footwork to stay in front of quicker guards, and the length to contest shots from bigger forwards. The Indiana Pacers ranked among the league’s best transition offenses last season, and Nesmith’s ability to secure rebounds and push the ball was a huge part of that success.

“Aaron Nesmith embodies our team’s selfless, fast-paced style of play while also playing a key role in defining our culture,” Pacers President of Basketball Operations Kevin Pritchard said when announcing the extension. “We look forward to Aaron’s continued growth and contributions to both our team and our community, and we’re proud to have reached an agreement that will keep him here in Indiana.”

That’s not just front-office speak. Nesmith genuinely fits what the Pacers are trying to build—a team that plays with pace, shares the ball, and defends with intensity.

What the Contract Means for the Indiana Pacers

Here’s the breakdown: Nesmith still has two years left on his current deal, making $11 million per season. That’s an absolute bargain for a player of his caliber. The new extension won’t kick in until the 2027-28 season, when he’ll earn $19.4 million, followed by $21 million in 2028-29.

For the Pacers, this is smart roster management. They’re rewarding a player who has proven his worth while locking him in at a fair rate before his value potentially skyrockets. And given the way contracts have ballooned across the league, $20 million per year for a two-way wing feels like a steal.

It’s also a signal to the rest of the roster. The Pacers are serious about continuity. They’re not looking to blow things up or chase the next shiny free agent. They’re betting on the group that came within one win of winning the NBA Finals, and they’re giving that group the runway to grow together.

A Journey Worth Celebrating

Nesmith’s path to this point hasn’t been easy. Drafted by the Boston Celtics with the 14th pick in 2020, he struggled to find consistent minutes in a crowded rotation. His role was limited, his confidence wavered, and it looked like he might become another promising prospect who never quite figured it out.

Then the Celtics traded him to the Indiana Pacers in February 2023, and everything changed. Head coach Rick Carlisle saw something in Nesmith—a player who could thrive in a system built on speed and space. The Indiana Pacers gave him opportunities, and Nesmith seized them. He became a starter, earned the trust of his teammates, and turned himself into one of the most reliable role players in the league.

Now, at 26 years old, Nesmith is hitting his prime. He’s not just surviving in the NBA—he’s thriving. And the Pacers are betting that the best is still ahead.

What’s Next for the Indiana Pacers?

With Nesmith locked in, the Pacers have answered one of the key questions heading into this season. Their core is intact. Their identity is clear. And their window to compete is wide open.

The extension also gives the front office flexibility moving forward. They can focus on building around Haliburton and Siakam without worrying about losing one of their most important defensive pieces. And if the Pacers continue to develop their young talent while maintaining their depth, they’ll be a problem for any team in the Eastern Conference.

For fans, this deal is reason to feel optimistic. The Pacers aren’t just trying to compete—they’re trying to win. And by keeping Nesmith in the fold, they’re taking one more step toward making that happen.