INDIANAPOLIS, INDIANA – MAY 27: Aaron Nesmith #23 of the Indiana Pacers attempts a jump shot against the New York Knicks during the first quarter in Game Four of the Eastern Conference Finals of the 2025 NBA Playoffs at Gainbridge Fieldhouse on May 27, 2025 in Indianapolis, Indiana. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Gregory Shamus/Getty Images)
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The Indiana Pacers have locked Aaron Nesmith into a two-year contract extension worth $40.4 million, according to ESPN’s Shams Charania.
This continues the trend of Nesmith being on team-friendly deals, as the last one he signed was for $33 million over three years.
Excellent value
Nesmith signing for that number is slightly surprising given that he’s Indiana’s best perimeter defender, their most reliable shooter, and proved himself to be a strong playoff performer last season. It was the maximum Indiana could offer, meaning he didn’t technically settle, but at the same time, Nesmith could – in theory – have explored the open market by letting his current deal play out.
Instead, he opted to stick around.
The 26-year-old had enormous trade value as it were, and this does nothing to change that. Any team in the NBA, who has just a slight insight into what constitutes a good contract, will immediately recognize this as a deal that is both attractive on the trade market, and one that will help the Pacers keep their books clean and aligned.
Nesmith hit 43.1% of his three-point shots last season, and guarded a multitude of different player archetypes last season, and that isn’t likely to change anytime soon.
The 6’5 wing is built like a tank, and his 215-pound frame allows him to absorb contact, and not lose his balance.
In recent years, Nesmith has greatly improved his shot-selection, and has become one of the smarter shot-takers around the league, recognizing time, place, score, and opportunity.
To keep, or to trade
The Pacers should be in no rush to move off Nesmith, even if they could land a haul for him, now that he’s locked up.
If anything, their priority this season should be to expand his offensive role, to see if there’s a chance he has more in his tank of potential.
That does not mean asking him to take 15 shots per game, or carry Indiana’s offense. But with Tyrese Haliburton out, this does present an opportunity for Nesmith – and the Pacers – to get him accustomed to take more than 8-9 shots per game.
If the Pacers do receive a godfather offer for Nesmith, especially one that is heavy on long-future assets, then that’s a conversation they can have internally, without actively shopping him.
That’s the luxury of locking in quality players to team-friendly deals. They’re not difficult to move, and there’s a reasonable chance offers come your way, meaning you can set your own price.
It’ll be interesting to see how the Pacers decide to play this.
Unless noted otherwise, all stats via NBA.com, PBPStats, Cleaning the Glass or Basketball-Reference. All salary information via Spotrac. All odds courtesy of FanDuel Sportsbook.
Source: https://www.forbes.com/sites/mortenjensen/2025/10/20/nesmith-signs-404-million-extensionremains-huge-asset-for-pacers/
