The Indiana Pacers have officially made their feelings known on Aaron Nesmith, and it looks like he is here to stay.
According to ESPN's Shams Charania, Indiana signed the Vanderbilt alum to a two-year, $40.4 million contract extension on Monday, the max salary he was eligible for. Additionally, Charania reported that Nesmith's new contract comes with a trade kicker, meaning that, if the Pacers were to trade him, they would have to pay him a bonus.
Not only does this mean Nesmith will be under contract through 2028-29, but it also means that the team is not likely to trade him at any point in the near future.
This was an obvious decision for the Pacers to make, and fans should be happy that it ultimately came to fruition.
Pacers fans should be thrilled with Aaron Nesmith's extension
Nesmith has been an important part of the Pacers' recent success. This was especially true last season, when he had a career year, averaging 12 points, 4 rebounds, and 1.2 assists while shooting 50.7% from the field and 43.1% from deep.
The South Carolina native saw a big pay raise from his initial $11 million AAV, but this is still a bargain for the Pacers.
For example, Nesmith's $20.2 million AAV puts him below the $22.7 million AAV Herb Jones is earning with the New Orleans Pelicans. Jones is a fantastic player for New Orleans, but the Pacers retaining Nesmith for less is going to be big for the team as they look to potentially remain below the luxury tax threshold.
Nesmith has constantly proven his worth ever since the Pacers acquired him from the Boston Celtics in 2022. And there are no reasons to believe that trend is going to stop any time soon as he just turned 26 years old earlier in October.
During his time in Indiana, Nesmith has established himself as its best wing defender and one of the best 3-and-D players in the NBA. This was especially noticeable during the Pacers' playoff run, when he scored 30 points on 8-for-9 shooting from beyond the arc in Game 1 of the conference finals against the New York Knicks.
As the Pacers look to re-establish themselves as title contenders, continuity remains an important part of their success. Locking up Nesmith for the foreseeable future is the first step to ensuring that this happens. And, if he continues his upward trajectory, he should be a valuable asset for the Pacers for years to come.
In May, Tyrese Haliburton spoke about Nesmith and what exactly makes him a crucial part of the Pacers' success.
"Every player in the NBA wants to go to battle with a guy like Aaron Nesmith. He's just unbelieveable when it comes to his work ethic, how hard he plays, and he's just been a big part of what we do," Haliburton said.
There is still room for Nesmith to grow, and he will have a great opportunity to do exactly that this season. And, given how much he has developed in Indiana so far, there are reasons to believe he will not be able to take that next step and become an even bigger weapon for the team.
This season will be an uncertain one for the Pacers without Haliburton or Myles Turner. It's expected that they will take a step back this season, but they have shown no indication of wanting to tank. Instead, they want to make some noise in a wide-open Eastern Conference and shock the basketball world again.
It's going to be difficult for Indiana to pull this off, but its decision to lock up Nesmith proves that it isn't ready to back down. And, who knows, another NBA Finals appearance may happen closer for the Pacers than many may anticipate.