Pacers' Projected Salary Cap for NBA Free Agency After Pascal Siakam Contract Rumors

The Indiana Pacers forward Pascal Siakam reportedly plans to sign a four-year, $189.5 million contract with the team at the start of free agency.

ESPN's Adrian Wojnarowski reported Siakam's plans to stay in Indiana after coming over via a midseason trade from the Toronto Raptors.

The deal is one year less than Siakam's five-year max but will still pay him an average of $47.4 million per season. He will make $42.3 million in 2024-25 and receive 8.5 percent raises each subsequent season.

The Pacers will still be well below the luxury tax even with Siakam and Tyrese Haliburton combining to make $84.6 million next season. The contract will, however, put them in over-the-cap category, meaning they will only have their midlevel exception and minimum contracts to use in free agency.

Re-signing Siakam was always going to be the Pacers' top priority this summer, so getting the deal done early should open up the front office to improve the roster. Obi Toppin and Doug McDermott are the only rotation players hitting free agency this summer and both should be re-signable at reasonable rates.

Toppin is a restricted free agent, so his market will be limited, and McDermott is a minimum-contract player at this point in his career if the Pacers want to bring him back.

Indiana's main focus on the free-agent market will likely be improving on the defensive end. The team could use help both on the perimeter and in rim protection, and general manager Chad Buchanan said he plans on being "aggressive" if he sees a fit.

"We see areas where we've got to improve. Both the roster, skill level, defensively, things like that," Buchanan said last month. "There's plenty of areas for us to improve. I think that will be a focus for us this summer and building a team moving forward."

Siakam's new deal is on the aggressive side for his market, but limiting it to four years should be a bit of a relief.