Pacers, Aaron Nesmith Agree To 2-Year, $40.4M Extension

Indiana Pacers forward Aaron Nesmith agreed to a two-year, $40.4 million contract extension with the franchise through the 2028-29 season, agent Mike Lindeman of Excel Sports Management told ESPN’s Shams Charania on Monday night.

Pacers Gave Aaron Nesmith His Maximum Allowed Salary

Per Charania, the Pacers offered Nesmith his maximum allowed salary ahead of Monday’s deadline for veteran extensions. His deal also includes a trade kicker.

The maximum Indiana could have provided Nesmith was a three-year deal worth up to $62.9 million.

Nesmith, who turned 26 last week, will earn $11 million in each of the next two seasons. His extension, which begins in two years, will pay him a projected $19.4 million in 2027-28 and $21 million in 2028-29.

Indiana acquired Nesmith via trade from the Boston Celtics ahead of the 2022-23 season, and he immediately posted career-high numbers en route to becoming a full-time starter with the team.

Indiana Pacers forward Aaron Nesmith has agreed to a two-year, $40.4 million contract extension with the franchise through the 2028-29 season, plus a trade kicker, agent Mike Lindeman of Excel Sports Management tells ESPN. Pacers give Nesmith the max allowed salary via extension. pic.twitter.com/c5zUYN3yj6

— Shams Charania (@ShamsCharania) October 21, 2025

The former first-rounder spent his first two seasons as a reserve for Boston.

In 45 games (37 starts) last season with the Pacers, Nesmith averaged 12 points, a career-high 4.0 rebounds, 1.2 assists, and 25 minutes per contest while shooting career bests of 50.7% from the field, 43.1% from 3-point range, and 91.3% at the free throw line.

Nesmith recorded a career-high 30 points in a loss at Milwaukee on March 15. He finished 11-of-16 (68.8%) shooting from the floor and 6-for-7 (85.7%) from beyond the arc.

Nesmith Spearheaded Indiana’s Playoff Comeback Against Knicks

During the 2025 playoffs, he also shot 49.2% from deep, the best by any player in a single postseason with at least 100 3-point attempts in NBA history, according to ESPN Stats & Information.

More importantly, Nesmith played a significant role in Indiana’s run to the NBA Finals, appearing in all 23 playoff games while averaging 12.7 points and 5.7 rebounds with a shooting line of 47.2/49.2/86.1.

His biggest moment came during Game 1 of the Eastern Conference finals, when he drilled nine 3-pointers and led Indiana to an improbable comeback win over the New York Knicks.

New York led by nine with 58 seconds remaining, but the Pacers forced overtime after a wild sequence that concluded in a basket for Tyrese Haliburton as the regulation buzzer sounded.

According to the Elias Sports Bureau, teams that trailed by at least nine points in the final minute of the fourth quarter or OT of a playoff game were 0-1,414 since 1998.

Across three seasons with Indiana, Nesmith has averaged 11.3 points, 3.8 rebounds, and 1.4 assists per game while shooting 47.3% from the floor and 40.2% from 3-point territory.

The Pacers host the Oklahoma City Thunder on Thursday to open their 2025-26 season.