Indiana Pacers forward Aaron Nesmith has agreed to a two-year, $40.4 million contract extension with the franchise through the 2028-29 season, agent Mike Lindeman of Excel Sports Management told ESPN’s Shams Charania on Monday night.
The Pacers offered Nesmith his maximum allowed salary ahead of Monday’s deadline for veteran extensions. His deal also includes a trade kicker.
Indiana could have given him up to a three-year deal worth $62.9 million, but settled on the two-year agreement instead.
Nesmith, who just turned 26 last week, will earn $11 million in each of the next two seasons.
When his extension kicks in two years from now, he’ll make a projected $19.4 million in 2027-28 and $21 million in 2028-29.
Indiana picked up Nesmith in a trade with the Boston Celtics before the 2022-23 season. The move transformed his career – he immediately posted career-high numbers and became a full-time starter with the Pacers.
Before coming to Indiana, the former first-rounder spent his first two seasons mostly watching from the bench in Boston.
Last season was a breakthrough for Nesmith. In 45 games (37 starts) with the Pacers, he averaged 12 points, 4.0 rebounds, 1.2 assists, and 25 minutes per game.
He shot the lights out too – career bests of 50.7% from the field, 43.1% from 3-point range, and an impressive 91.3% at the free throw line.
His best scoring night came against Milwaukee on March 15, when he dropped a career-high 30 points. He was nearly perfect that night, hitting 11-of-16 shots (68.8%) and 6-of-7 threes (85.7%).
Playoff Sharpshooter Makes History
But it was in the playoffs where Nesmith really made his mark.
He shot an incredible 49.2% from deep during the 2025 postseason – the best percentage ever by any player who attempted at least 100 threes in a single playoff run.
Nesmith was a key piece in Indiana’s surprising run to the NBA Finals, playing in all 23 playoff games while averaging 12.7 points and 5.7 rebounds with ridiculous shooting splits of 47.2/49.2/86.1.
His defining moment came in Game 1 of the Eastern Conference finals against the New York Knicks.
Down by nine points with just 58 seconds left, the Pacers pulled off what seemed impossible. Nesmith drilled nine 3-pointers in the game, helping fuel an improbable comeback that forced overtime after Tyrese Haliburton hit a buzzer-beater to end regulation.
How rare was this comeback? According to the Elias Sports Bureau, teams trailing by at least nine points in the final minute of a playoff game were 0-1,414 since 1998.
Until the Pacers did it.
In his three seasons with Indiana, Nesmith has averaged 11.3 points, 3.8 rebounds, and 1.4 assists while shooting 47.3% overall and 40.2% from downtown.
The Pacers will begin their 2025-26 season this Thursday when they host the Oklahoma City Thunder.
