What Other Moves Can the Pacers Make in Free Agency?

The Indiana Pacers agreed to a deal with Kelly Oubre Jr. on Wednesday afternoon and it was reported as a two-year, $17M contract from ESPN's Shams Charania and Yahoo! Sports NBA insider, Kelly Iko. However, James Boyd, John Hollinger, and David Aldridge of The Athletic, shared that the contract is actually worth $16.5M over the next two seasons instead of $17M, after talking to a team source.

This puts Oubre's contract next year at an estimated value of $8.29M according to Yossi Gozlan of CapSheets.com, which is roughly $186k less than Jarace Walker's current salary, making Oubre Jr. the 9th highest paid player on the team.

By making this signing, Indiana is now hard-capped at the first apron, meaning they cannot add anymore salary that would take them over the $209,015,000 threshold. The Oubre Jr. signing has the Pacers at roughly $207.4M in total salaires (and accounting for unlikely bonuses) leaving them with just $1.64M of available space.

This means that the only player eligible to fill Indiana's last spot on the roster is recently acquired rookie, Braden Smith, who can sign the rookie minimum of $1.35M. However, it has been reported that Smith will sign on a two-way deal.

How Can the Pacers Free Up More Money?

If the Pacers wanted to add another player or two to this roster, they would either have to execute a trade, or waive someone on the roster that has a non-guaranteed contract, or a partially guaranteed contract.

Waiving Quenton Jackson's Partially Guaranteed Salary

Mar 17, 2025; Minneapolis, Minnesota, USA; Indiana Pacers guard Quenton Jackson (29) dribbles the ball against the Minnesota Timberwolves in the second half at Target Center. Mandatory Credit: Jesse Johnson-Imagn Images | IMAGN IMAGES via Reuters Connect

The Pacers currently are paying Quenton Jackson $2.58M for next season. However, he is only guaranteed 275K of that deal. If Indiana were to waive him, that would put them roughly $3.9M away from the first apron, which is enough space to sign any player to a veteran minimum.

IF the Pacers wanted to bring in Gary Trent Jr. on a veteran minimum contract, they could waive Quenton Jackson and then sign Trent Jr. to a $3.5M deal and still be about 400K away from the first apron threshold. That's extremely tight, and puts Indiana right up against it, but still a legal move.

Waiving Micah Potter's Non-Guaranted Salary

Dec 26, 2025; Indianapolis, Indiana, USA; Indiana Pacers center Micah Potter (11) in the second half against the Boston Celtics at Gainbridge Fieldhouse. Mandatory Credit: Trevor Ruszkowski-Imagn Images | IMAGN IMAGES via Reuters Connect

If Indiana were to waive Micah Potter's non-guaranteed contract of $2.8M, they would open up $4.4M in available space, which is slightly more than Quenton Jackson's. Chad Buchanan has mentioned that they could look at center, so waiving Potter if they don't feel like he moves the needle as much as someone else does in free agency is an option.

One center still available in free agency that could make sense to add is veteran Andre Drummond, who Indiana could sign to a $3.87M veteran's minimum contract if they waived Potter. They could also waive Potter's salary, and trade for a player who fits into that $4.4M space,

Trading a Player: Jarace Walker or Ben Sheppard

Indiana has two young players on expiring contracts in Jarace Walker and Ben Sheppard. By adding Oubre Jr. to the team, one of these two players will likely be pushed out of the rotation. While we have seen both players develop and grow, this season is all about winning and building a roster that can compete at the highest level.

If Indiana were to trade Jarace Walker away without taking anything back in return, they would get themselves under the luxury tax by about $1.5M. They could then sign Braden Smith to the rookie minimum and get their roster to 14 players -- which is the required number of players that must be signed to each team -- and avoid paying the luxury tax.

While that sounds extreme, this is a Pacers team that hasn't paid the tax in 20+ years and can't be entirely ruled out. However, I don't think the Pacers will do that. I can however see them trading away Jarace Walker in a 1-for-2 type of scenario, where they send out his $8.4M contract and take two players back in return.

Why Indiana Might Execute a 2-for-1 Trade

Jan 30, 2023; Indianapolis, IN, USA; Indiana Pacers president of basketball operations Kevin Pritchard speaks during an Indiana Pacers press conference to announce the contract extension of center Miles Turner at Gainsbridge Fieldhouse. Mandatory Credit: Marc Lebryk-USA TODAY Sports | USA TODAY Sports

Now I am not saying I would do this trade, or that the teams involved would make this move, but for example, Indiana could trade Jarace Walker to the Clippers for Kris Dunn and Cameron Christie. It would save Indiana $0.5M and get them to 15 players on the roster.

The main reason Indiana would potentially want to get to 15 players on the roster is because they will enter training camp with only 13 healthy players as Johnny Furphy is recovering from his right ACL injury. The recovery time for that type of injury varies, but most players take 9-12 months to return and that is not including the ramp up time to get reacclimated with the speed and physicality of the game.

Also of note, when your roster is at the minimum requirement of 14 players, your two-way players go from being eligible to play 50-games each (150 total), to just 90 games combined. Not a huge wrinkle that would force them to add a 15th player, but an interesting bit of information to note when looking at the potential reasons for why they might do something like this.

Trading for a Player and Signing One

Missi Jarace — Nov 25, 2024; Indianapolis, Indiana, USA; New Orleans Pelicans center Yves Missi (21) and Indiana Pacers forward Jarace Walker (5) fight for a rebound in the first half at Gainbridge Fieldhouse. Mandatory Credit: Trevor Ruszkowski-Imagn Images | USA TODAY Sports via Reuters Connect

They could also do a 1-for-1 trade with a team that has first apron space, and take back a lesser amount of salary that would open up enough space to sign a player to a veteran minimum and not go into the fist apron.

Again, I am not saying I would do this trade, or that the teams involved would make this move, but Indiana could legally trade Jarace Walker to the New Orleans Pelicans using their non-taxpayer mid-level exception or their traded player exception, for Yves Missi. This would save Indiana roughly $5M, putting them about $6.5M from the first apron.

Indiana could once again sign a veteran minimum with that space, or use the remainder of their non-taxpayer mid-level to sign someone else. There would not be ample playing time to lure a free agent to want to play here, but you can see how the Pacers can take different avenues to make more roster moves.

Final Thoughts

KOJ — Jan 25, 2024; Indianapolis, Indiana, USA; Philadelphia 76ers guard Kelly Oubre Jr. (9) looks on in the first half against the Indiana Pacers at Gainbridge Fieldhouse. Mandatory Credit: Trevor Ruszkowski-USA TODAY Sports | USA TODAY Sports via Reuters Connect

I wouldn't rule out the Pacers exploring all options before the NBA offseason comes to an end, but I do think they are probably content viewing the contingency plan as trading for Zubac, adding Oubre Jr., and trading Kam Jones for Braden Smith.

Will these moves be enough to keep Indiana at the top of the East? Only time will tell. Indiana is hoping they have the same magic they had two seasons ago and can win the Eastern Conference once again.

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