Indiana Pacers gain long-term stability after Andrew Nembhard’s contract extension

INDIANAPOLIS — The Indiana Pacers made one of their biggest moves of the offseason last week when they extended the contract of guard Andrew Nembhard.

The new, longer contract for the 24-year-old was announced last Friday and reports have detailed that it is a three-year extension worth $58.6 million. For a player who has not made more than $2.4 million in a given season, that is a significant contract.

It’s also a big win for the Indiana Pacers. Nembhard is a fantastic player and still young at 24. He’s only been in the league for two years, so he has room to grow despite having experience – he helped the blue and gold reach the Eastern Conference finals last year.

Starting point guards aren’t cheap in the NBA, and neither are young players. Malik Monk and Kentavious Caldwell-Pope both signed multiyear contracts worth an average annual value of $19.5 million or more during the offseason, and they play Nembhard’s position. Patrick Williams, a young but unproven player, signed a contract worth $18 million per year.

Nembhard, after his extension, is now under contract for four years and $60.7 million in total. That’s just over $15 million per season for a young and experienced point guard who plays both ways.

“Throughout his career, Andrew has proven that there is no moment too big for him and that he continually rises to every challenge presented to him and our team,” the Pacers president of basketball operations said in a statement.

Nembhard’s deal, at least in overall numbers, is a bit misleading. In order to make the extension effective, Indiana declined a team option that previously existed on Nembhard’s contract. That option covered the 2025-26 season and was for just $2.2 million. By declining that option and then extending Nembhard’s contract, he’ll get a pay raise of roughly $16 million next season.

That’s why the length of the deal made sense. If Nembhard was only willing to add two years to his contract, it may not have been worth it for Indiana. They already had that team option in their favor. A four-year extension would have required declining that team option, and that may have been too long a commitment for Nembhard. Three years was the perfect middle ground.

That resolution means four more seasons under contract in total, which will keep Nembhard in Indy through 2028, barring a trade. He has been a huge piece for the franchise since being selected 31st overall in the 2022 draft. For the final season of the contract, the Gonzaga product will make just a few million more than the Non-Taxpayer Mid-Level Exception.

It’s a cheap deal for a starter, and there were reasons to keep Nembhard beyond a big contract. He’s an impactful player: The Pacers were more than four points better per 100 possessions on defense with Nembhard on the court. On offense, they went from being at their best to being elite when Nembhard was playing.

In the postseason, the former second-rounder averaged 14.9 points and 5.5 assists per game. When star point guard Tyrese Haliburton was injured in the final two games of the playoffs, he swept the Boston Celtics.

Had the Canadian guard built on his postseason success and had a strong third season, he could have landed a big contract as a restricted free agent next summer. San Antonio, Brooklyn and Washington all need a point guard and project to have cap space in 2025.

Instead, Nembhard is staying in Indiana. “His hard work and focus on developing all aspects of his game have made him a key part of our success, and he has only just begun to realize his potential, so we are excited to have him with us for years to come,” Pritchard said.

Nembhard averaged 9.2 points and 4.1 assists per game last season. He’ll get better while playing for Team Canada in the Olympics this offseason. “How to draw fouls and rebound,” Nembhard said of what he’s working on this summer.

After the Olympics, he’ll be back with the Pacers. Once he’s back, he’ll be able to grow over the term of his new contract and become the player this deal says he can be. He may already be that player, and that’s why the Pacers should be beaming that Nembhard signed this extension.