An explanation of Aaron Holiday’s rookie contract

TARRYTOWN, NY - AUGUST 12: (EDITOR'S NOTE:SATURATION WAS REMOVED FROM THIS IMAGE) Aaron Holiday of the Indiana Pacers poses for a portrait during the 2018 NBA Rookie Photo Shoot at MSG Training Center on August 12, 2018 in Tarrytown, New York. 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 Elsa/Getty Images)
TARRYTOWN, NY - AUGUST 12: (EDITOR'S NOTE:SATURATION WAS REMOVED FROM THIS IMAGE) Aaron Holiday of the Indiana Pacers poses for a portrait during the 2018 NBA Rookie Photo Shoot at MSG Training Center on August 12, 2018 in Tarrytown, New York. 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 Elsa/Getty Images)
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Aaron Holiday Indiana Pacers
TARRYTOWN, NY – AUGUST 12: Aaron Holiday of the Indiana Pacers poses for a portrait during the 2018 NBA Rookie Photo Shoot at MSG Training Center on August 12, 2018, in Tarrytown, New York. (Photo by Elsa/Getty Images)

After being selected 23rd by the Indiana Pacers in the NBA Draft, Aaron Holiday signed his rookie-scale contract with the team. Let’s take a closer look at the deal.

When the Indiana Pacers selected Aaron Holiday with the 23rd pick in the 2018 NBA draft, the reactions were overwhelmingly positive. He slides into a future position of need. He was a great player for UCLA. He has real NBA skills. It seemed like a home run choice.

I have been critical of the pick myself, but for this article, that is neither here nor there. Today, I want to take a look at Aaron Holiday’s rookie-scale contract, which is far and away the best thing about having him on the team.

Holiday has value as a prospect and a player. That value as a player probably won’t manifest itself until his second or third season, but it will eventually. The combination of his potential and his skill make him a valuable asset, and yet he is not paid like it.

Rookie scale contracts for players picked in the 20s have a low average annual value. Let’s take a look at the contract, Holiday’s financial future, and more.