Could the Indiana Pacers Sign DeMar DeRozan in Free Agency?

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The Sacramento Kings officially waived the 17-year veteran, DeMar DeRozan, on July 6, 2026, making him an unrestricted free agent, with the abilty to sign with any of the other 29 franchises.
DeRozan will turn 37-years-old before the season starts , but is still a productive player and a walking bucket. The former 9th overall pick in the 2009 NBA Draft is expected to have several teams interested in adding him during the free agency period.
The California native signed with Sacramento back in the summer of 2024 because he wanted to go back home and play in the sunshine state. Early reports indicated that if the Kings were to waive him he would likely go to the Clippers with the superstar he was once traded for, Kawhi Leonard.
Mutual Interest in a Return to Toronto?

Now that Kawhi is expected to extend in Toronto -- after being dealt last week for Brandon Ingram, Gradey Dick, and first-round picks -- there is growing speculation that DeRozan could return to the team that took him in the draft, and reunite with longtime teammate, Kyle Lowry.
This would be a super cool story for the city of Toronto, but just because it's a cool story doesn't mean that it will happen. Toronto won't be the only team interested in his services, and that's because DeRozan has averaged 18 points per game or more since the 2012-13 season.
He would be a significant add to any roster, whether he's coming off the bench or starting, but at this stage in his career, DeRozan wants to win. A majority of the teams that will have interest in adding him won't be able to sign him for more than the veterans minimum of $4.07M.
How Indiana Could Add DeRozan

Indiana does not have available cap space after adding Kelly Oubre Jr. to sign DeMar DeRozan, however, that doesn't mean they can't get there. The simplest way for the Pacers to create enough space would be to waive Micah Potter's $2.8M non-guaranteed contract, which would get them $4.4M away from the first apron.
This would give the Pacers just enough space to add DeRozan to the veterans minimum for a player with 10+ years of experience for $4.07M. The roster would still have the required 14 players needed, but it would take their center depth from three players to two.
If Indiana brought in DeRozan and Oubre Jr., it would make little to no sense for the Pacers to continue to roster both Jarace Walker and Ben Sheppard. Indiana could then look to move off one of the two of them, preferably for a center.
Final Thoughts

Why would the Pacers have interest in adding a 37-year-old wing? Well, they want to win-now and he is still a capable player. He is an elite scorer, despite not being a great three-point shooter, and adds more scoring to the bench than anyone else they have on the roster.
DeRozan is also able to play the two, the three, and the small-ball four. While his defense isn't as strong as Oubre Jr.'s, he is a much better passer averaging 4.1 assists for his career. Indiana could make this move without having to get off either Walker or Sheppard, but it makes trading one of them an easier decision.
This would be a low-buy addition if Indiana could pull it off, but the playing time for DeRozan would be marginal compared to other places he could sign. Indiana's style would also be quite different from how he's used to playing, but the Pacers could use a guy that can go get a bucket when the offense breaks down.
I don't see DeRozan joining the Pacers in the offseason, but it would be easy to make happen if he is willing to sign the veterans minimum. Indiana offers DeRozan a well-balanced team, a reunion with his former teammate, Pascal Siakam, and the chance to play for a championship after spending the back half of his career playing for lesser talented teams.
You can follow me on X @AlexGoldenNBA and listen to my daily podcast, Setting The Pace, wherever you get your podcasts.

I was born in Indianapolis, Indiana and I am the host and creator of Setting The Pace: A Pacers Podcast. I have been covering the team since 2015, and talking about them on the podcast since 2018. I have been a credentialed media member since 2023.
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