Pacers to Sign Braden Smith to Two-Way Contract

For over a week, the Indiana Pacers were rumored to have interest in getting back into the second round of the NBA Draft, first being reported by Jake Fischer of The Stein Line, and they did just that by acquiring the Westfield standout, Braden Smith.

There are multiple reasons why the Pacers wanted to secure a pick in the 31-39 range, but the biggest reason, financial flexibility.

In order for the Pacers to get back into the second round of the NBA Draft, they had to send out two second-round pick swaps in 2028 and 2030, cash considerations, and reserve guard, Kam Jones to acquire the No. 38 overall pick.

Roster and Financial Breakdown of this Move

The cost to acquire No. 38 this season from the Bulls was cheaper than what it cost the Pacers to acquire No. 38 from the Spurs last year. Indiana did not have to give up any second-round picks outright this year, but they did forfeit a 2030 second-round pick belonging to the Sacramento Kings in last year's trade. Given Sacramento's history of finishing near the bottom of the standings, that pick holds significantly more value than the right to swap draft positions in 2028 and 2030.

Chicago also did the Pacers a huge favor by taking the contract of Kam Jones back in the deal. This move puts Indiana about $1.87M under the luxury tax and $9.9M under the First Apron, according to CapSheets.com.

Indiana now sits with 13 players on their 15 man roster, and according to Dustin Dopirak of the Indy Star, the Pacers are not going to be adding Braden Smith to their 15 man roster after trading for him. Instead, they will be signing him to a two-way contract, which doesn't count against the Pacers' salary cap figures.

The First Domino to Fall

After the Pacers lost their 2026 first-round draft pick in the NBA Draft Lottery, Kevin Pritchard and Chad Buchanan signaled that they want to compete for a championship with this group of guys.

In addition to the comments made by the Pacers' front office, head coach, Rick Carlisle, told the media after the team's final regular-season game that the organization had a contingency plan in place if it lost its draft pick.

This is the first domino to fall in order for the Pacers to successfully attack their offseason plan. By swapping out Kam Jones for Braden Smith, Indiana addressed three major things: financial flexibility, an open roster spot, and a true depth piece point guard.

Final Thoughts

While there is no clarity on how significant Smith's role will be on the Pacers next season, we do know that he will spend a portion of the season playing for the Pacers' G-League affiliate, the Noblesville Boom, since he is signing on a two-way deal.

Smith finished his collegiate career as the all-time leader in assists in Division 1. He is a special passer that sees the floor incredibly well and developed more of his game each season under Matt Painter at Purdue.

There are multiple reasons the Pacers made this move, but don't discredit Smith's talent. He is a good player and his collegiate success earned him a spot in the NBA. If the Pacers hadn't drafted him, someone else would have.

He can use this opportunity to learn from the Pacers' great point guard room of Haliburton, Nembhard, and McConnell, as he takes the next steps in his basketball career.

You can follow me on X @AlexGoldenNBA and listen to my daily podcast, Setting The Pace, wherever you get your podcasts.

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