Aaron Nesmith is signing a $40.4 million contract extension before the season

Coming off an incredibly heroic 2025 playoff run. Aaron Nesmith cashed in. On Monday evening, before the start of the 2025-26 season Indiana Pacers allegedly reconciled to a two-year, $40.4 million contract extension with their starting small forward, according to ESPN’s Shams Charani.

Nesmith has two years left on his current $11 million-a-year deal, but The Pacers have clearly identified him as a key member the core of the team and in turn rewarded him financially. He has made many strides in his game and has become one of the best 3-and-D wings in the entire NBA.

In 23 games during the Pacers’ run to the NBA Finals last season, Nesmith scored 12.7 points per game on 49 percent shooting from deep on over five attempts per game. He will forever be remembered in Pacers lore for the way he saved the team in Game 1 of the 2025 Eastern Conference Finals.

The Pacers were up by double figures in the final minutes of the game before Nesmith fired – drilling five 3-pointers in a span of less than three minutes and scored 17 points during that time frame to rescue Indiana from a 14-point deficit, setting up Tyrese Halliburton’s game-tying layup at the buzzer to force overtime, ultimately leading to a repeat for the Indians.

The 26-year-old wing also has the responsibility of guarding the opposition’s best wing scorer, and his presence clearly has a winning impact on the Pacers. Last year, the Pacers went 29-16 with him in the lineup and 21-16 without him. He is the epitome of a winning player, he is only 26 years old and in the prime of his career, which makes him worthy of this new contract extension he has received.

Pacers to run it in ’26-’27

If only Halliburton hadn’t torn his Achilles in Game 7 of the NBA Finals against the Oklahoma City Thunder, then the Pacers would have been considered one of the biggest favorites to win the title in 2025-26. Alas, his injury changes everything for Indiana, and the departure of Myles Turner in free agency will not help matters.

Regardless, the Pacers at least want to keep most of the key members of their team for the NBA Finals in 2025. Keeping Nesmith in town for the next four seasons will be huge considering any title contending team needs a player like him to win. Benedict Maturin is also in line for a big contract, though Indiana will release him in restricted free agency before what could be a big year for the fourth-year player from Arizona.