In a recent article for Bleacher Report, Andy Bailey predicted that the Indiana Pacers will sign Aaron Nesmith to roughly a three-year, $70 million extension and Bennedict Mathurin to roughly a four-year, $95 million extension.
On paper, it would be great for Indiana to lock up both players, who are each currently eligible for a contract extension, for the long haul. However, the Pacers are about $6 million away from moving into the luxury tax threshold, according to Spotrac. If they still want to avoid paying the luxury tax for the first time in two decades, these contracts would essentially guarantee that they would not have their way. Plus, given that the Pacers still do not have a concrete solution to their center problems, this could make it much more difficult for them to find it as it would be harder for them to spend money to land another big man in free agency or even via a trade.
What decision should the Pacers make?
There are pros and cons to Indiana signing Nesmith and Mathurin to new contracts.
The most obvious pro is that doing so would lock up two of the Pacers' most important players for the foreseeable future, which would be huge in their quest to re-establish themselves as title contenders. Both players fit the team's timeline as well since they are 26 and 23 years old, respectively.
On the flip side, giving them both new contracts would likely move the Pacers into the luxury tax, which they have seemingly made clear they do not want to do as it would force them to pay financial penalties and deal with potential roster limitations, such as not being able to use the non-taxpayer mid-level exception.
Ultimately, the Pacers must prioritize keeping their roster intact as much as possible, even if it means they will have to pay the luxury tax and deal with those consequences.
Indiana was just one win away from winning its first-ever NBA championship, and it is fair to assume that things should only get better for the team once Tyrese Haliburton returns from his Achilles injury. It is clear that the Pacers have something special, and tearing the roster apart just to save some money would be a massive mistake, especially given that they have already proven they can compete for a championship.
The Pacers will have some major decisions to make soon, but as it stands, the solutions are clear as day, and it is up to the front office to make them happen.