Aaron Nesmith Extends Contract with Pacers for $40.4 Million

INDIANAPOLIS — Aaron Nesmith will remain with the Indiana Pacers after agreeing to a two-year contract extension worth $40.4 million, which was reported late Monday. The extension keeps him with the team through the 2028-29 season.

At 26 years old, Nesmith has emerged as a vital player for the Pacers since being acquired from the Boston Celtics in 2022. The deal highlights Indiana’s commitment to one of its most reliable defensive players following a strong playoff performance, where he started all 23 games leading to the NBA Finals.

Nesmith had a breakout season in 2024-25, averaging a career-high 12 points, 4 rebounds, and impressive shooting percentages—51% from the field, 43% from beyond the arc, and 91% from the free-throw line. His performance during the playoffs was even more notable, as he shot 49.2% on three-pointers, setting an all-time NBA record for a single postseason with at least 100 attempts.

Kevin Pritchard, the Pacers’ President of Basketball Operations, expressed pride in retaining Nesmith, stating, “Aaron embodies our team’s selfless, fast-paced style of play and plays a key role in defining our culture.” Pritchard added that they look forward to Nesmith’s growth and contributions to the team and the community.

Having previously played two seasons with Boston, Nesmith has developed a reputation as a strong defender, matching up against top players like Giannis Antetokounmpo and Jalen Brunson. Head coach Rick Carlisle praised his athleticism, calling him a “strong, athletic wing” who excels on both ends of the court.

The extension comes as a financial win for both the Pacers and Nesmith. With an annual average salary of $20.2 million, Nesmith’s deal is viewed as a bargain compared to similar players. This flexibility is crucial for the Pacers as they aim to compete in the Eastern Conference.

The Pacers will open their regular season at home on Thursday, October 23, against the Oklahoma City Thunder.