Why the Pacers Haven't Signed Braden Smith Yet: Indiana's GM Explains the Delay

When the Indiana Pacers selected Purdue guard Braden Smith with the No. 38 overall pick in the 2026 NBA Draft, many fans assumed a contract announcement would quickly follow.

Weeks later, Smith remains unsigned.

So, what's the hold up?

According to Pacers general manager Chad Buchanan, the front office is still evaluating its options.

On Setting the Pace, Buchanan explained that Indiana hasn't finalized the back end of its roster because the organization is balancing multiple priorities: determining how to use its final standard roster spot, how to allocate its three available two-way contracts, and how to use the limited amount of space they have below the first apron.

Two-Way Contract Puzzle

At the moment, Ethan Thompson, Jalen Slawson, and Kobe Brown occupy Indiana's three two-way contract slots.

Because NBA teams are limited to three two-way players, signing Smith to a two-way contract means that one of these three players would have to be waived by the team. Initial reports after the NBA Draft stated that Smith would be signed to a two-way deal, but that has yet to happen.

After agreeing to new deals this offseason with Kobe Brown and Jalen Slawson, if the Pacers were to move off of one of their players on a two-way deal in order to sign Smith to one, the most likely outcome would require moving on from Ethan Thompson.

However, that isn't a decision the Pacers appear eager to make.

Thompson didn't participate in the NBA Summer League because he was representing the Puerto Rican National Team, where he emerged as one of the team's top performers. His absence may have kept him out of sight, but it certainly hasn't taken him out of Indiana's plans.

Buchanan made that clear when discussing Thomson's future on Setting the Pace.

"Ethan is a guy that when he plays in the G League, he scores at a very high level, a very efficient level. We targeted that when we brought him to us last year, that we needed some scoring punch and some shooting. We liked his feel for the game. We thought he was a fit for our style. And it proved to be that way. We had some good moments last year and are still very optimistic about his future. We would like to hopefully have him in the mix moving forward this year."

Those comments make it obvious that Thomson isn't simply a placeholder occupying a two-way slot. The Pacers believe he can help them.

The First Apron Complicates Everything

Purdue Boilermakers guard Braden Smith (3) looks to get past Arizona Wildcats guard Jaden Bradley (0) during a NCAA Tournament game Saturday, March 28, 2026 at SAP Center in San Jose, Calif. Purdue fell to Arizona 79-64. | USA TODAY Network via Reuters Connect

Financially, Indiana still has enough room beneath the NBA's first apron to sign Smith to a rookie minimum deal that is approximately $1.35M.

However, doing so would use the team's final standard roster spot and significantly reduce its flexibility.

Buchanan explained the organization's current thought process.

"We're very, very tight to the first apron and we're hard capped now. We have different options to fill in that 15th spot. We're still kind of making that decision, working through some choices at the back end of the roster, at that 15th spot, with the two-way spots, so still working through all those options at this point."

Those comments suggest Indiana isn't deciding only between Smith and Thompson.

The Pacers are also evaluating whether another player could better fill the final roster spot while remaining under the first apron. Because of their financial constraints, they're currently limited to signing players with zero or one year of NBA service.

Even so, it would still come as a surprise if someone other than Smith ultimately landed that final roster spot.

There's No Rush

Mar 7, 2026; West Lafayette, Indiana, USA; Purdue Boilermakers guard Braden Smith (3) celebrates a referee call during the first half against the Wisconsin Badgers at Mackey Arena. Mandatory Credit: Jacob Musselman-Imagn Images | IMAGN IMAGES via Reuters Connect

The Pacers don't have to make a decision today.

Training camp is still weeks away, giving the front office plenty of time to determine the best path forward.

Indiana could also follow a similar blueprint to the one it used with Kam Jones last offseason by negoitating a partially guaranteed standard contract that gives both sides flexibility moving forward.

The organization clearly believes Smith can develop into a valuable point guard depth piece over the next two seasons. But at the same time, Thompson has already prove he can produce within Indiana's system, making him much more difficult to part with than many fans may realize.

In face, Buchanan's comments suggest the Pacers would prefer finding a way to keep both players rather than choosing between them.

Experience Matters on Two-Way Deals

Apr 5, 2026; Cleveland, Ohio, USA; Indiana Pacers guard Kobe Brown (24) drives to the basket against the Cleveland Cavaliers during the second half at Rocket Arena. Mandatory Credit: Ken Blaze-Imagn Images | IMAGN IMAGES via Reuters Connect

Buchanan also revealed another important factor influencing the team's decison.

"If we have injuries like we had last year, we learned those guys need to be able to step in and play, and it can't necessarily be developmental projects. At least all three of them can't be."

That statement offers another possible solution.

Slawson and Brown are viewed as players capable of contributing immediately if injuries strike. With Johnny Furphy recovering from a torn ACL, having experienced, NBA-ready depth on two-way contracts becomes even more valuable.

Buchanan hinted that Indiana would be willing to utilize one of their two-way slots for a developmental player, but that wouldn't be the case for all three of them. Those comments insinuate that Smith fill one of those two-way slots, especially with Brown and Slawson already being brought on as NBA-ready pieces.

Thompson's Roster Battle

Apr 12, 2026; Indianapolis, Indiana, USA; Indiana Pacers guard Ethan Thompson (55) shoots the ball while Detroit Pistons guard Daniss Jenkins (24) defends in the first half at Gainbridge Fieldhouse. Mandatory Credit: Trevor Ruszkowski-Imagn Images | IMAGN IMAGES via Reuters Connect

Unfortunately for Thompson, the biggest obstacle he faces is simply the Pacers depth at the position he plays.

Indiana already has Quenton Jackson, Ben Sheppard, Kelly Oubre Jr,, Andrew Nembhard, and Aaron Nesmith capable of logging minutes at the two spot. And in some situations, Indiana could utilize Tyrese Haliburton and Jarace Walker there as well.

Finding consistent NBA minutes for Thompson won't be easy, but making him their go-to player in the G League will only help Braden Smith develop as a point guard at the next level.

The Pacers know that if they were to waive Thompson, he would quickly be snatched up by another franchise on a two-way deal with the potential for more playing time.

That makes this decision even more difficult than just waiving him and signing Smith to the deal.

Waiting Could Create Even More Flexibility

Chad Buchanan speaks to Media | Ron Hoskins/NBAE via Getty Images

There's another wrinkle worth monitoring.

As the NBA season progresses, minimum contracts become prorated. While Indiana is available cap room won't increase, the cost of signing a player later in the season decreases because fewer games remain on the schedule.

At the moment, the Pacers are limited to signing players with zero or one year of NBA service. Waiting even a month into the season would reduce the financial hit of adding a minimum-salary player, giving Indiana additional flexibility without creating new space.

That possibility only adds another reason for patience.

The Bottom Line

Feb 19, 2026; Washington, District of Columbia, USA; Indiana Pacers guard Ethan Thompson (55) dribbles against the Washington Wizards during the second half at Capital One Arena. Mandatory Credit: Brad Mills-Imagn Images | IMAGN IMAGES via Reuters Connect

If you're wondering why Braden Smith still hasn't signed with the Pacers, the answer isn't that Indiana has cooled on the second-round pick.

It's that the organization values Ethan Thompson, wants to preserve roster flexibility, and is carefully navigating life just below the first apron.

Eventually, Smith is expected to sign. The only question is what type of contract he'll receive--and what corresponding move the Pacers decide to make to complete their roster.

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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