Sources predict the Pacers will not re-sign Aaron Nesmith to a contract extension

After a run to the NBA Finals in 2025, the Pacers have an uphill battle for the 2025-26 season. The team will be without the services of all-star PG Tyrese Haliburton. 

He suffered an Achilles tear in Game 7 of the NBA Finals. However, Indiana has plenty of talent left on their roster. Small forward Aaron Nesmith has two seasons left on his three-year deal with the Pacers. NBA insider Zach Lowe said that Nemsith is eligible for a contract extension on October 1. However, Lowe believes the Pacers will not offer Aaron Nemsit an extension ahead of the upcoming season.

Do the Pacers consider Aaron Nemsith as part of their long-term future?

The 2024-25 season was Aaron Nesmith’s fifth year in the NBA and his third with the Pacers. He was the 14th overall pick by Boston in the 2020 NBA draft out of Vanderbilt. In two seasons with the Celtics, Nesmith played in 98 games and made two starts. During the 2022 offseaosn, Nesmith was traded by the Celtics to the Pacers. In that deal, Boston acquired Malcolm Brogdon. Aaron Nemsith has played three seasons for the Pacers. He’s appeared in 190 games and made 144 starts.

On a recent episode of his podcast, NBA insider Zach Lowe shared his thoughts on Pacers’ Aaron Nesmith. He mentioned how the team could have to choose between Andrew Nembhard and Aaron Nemsith. Last year, the team gave Nembhard a three-year, $58.6 million deal. Nembhard is clearly part of their future in Indiana. Zach Lowe is unsure if the same can be said about Aaron Nesmith.

Aaron Nesmith hosted members of the squad at his home in Charleston this week ☀️💙

(📸 @aaron_nesmith/IG) pic.twitter.com/7a0aVdpPS8

— Indiana Pacers (@Pacers) September 6, 2025

Lowe explained how Indiana would have to enter the luxury tax if it were to sign Nesmith to a long-term deal. Is the team willing to do that? There were reports this offseason that the Pacers would have entered the second round to pay Myles Turner. Instead, he left in free agency to sign with the Milwaukee Bucks. Aaron Nemsith is currently on a three-year, $33 million deal with the Pacers.

For the production he gives Indiana, that makes his contract extremely valuable. Nesmith is on the books for $11 million in 2025-26 and 2026-27. If the Pacers want to stay conteding in the East, they should sign Aaron Nemsith to an extension. He’s a valued member of their roster and was a key piece in their run to the 2025 NBA Finals. Aaron Nesmith was a defensive pest while also contributing on offense. Tyrese Haliburton is out in 2025-26, and Aaron Nesmith could see more production because of it.