Andrew Nembhard Signs $59M Pacers Contract; Updated Salary Cap in 2024 Free Agency

The Indiana Pacers and guard Andrew Nembhard have agreed to a three-year, $59 million extension, ESPN's Adrian Wojnarowski reported.

The contract is the maximum allowable over the three-year term, Wojnarowski noted.

Nembhard will play the 2024-25 season at a cap hit of just over $2 million.

The extension kick in for 2025-26, replacing his current $2.19 million club option with an $18.1 million cap hit, per ESPN's Bobby Marks:

The new deal will not impact the Pacers' 2024-25 salary cap, which is currently in luxury tax territory but $7.3 million below the first apron, per Spotrac.

After agreeing to the new deal, the Pacers are currently projected to have approximately $32.89 million in first apron space, and $44.8 million in second apron space, heading into the 2025-26 season, per Spotrac.

The team may need to use some of that space to re-sign or replace center Myles Turner, who is currently scheduled to become an unrestricted free agent in 2025.

The Pacers will also need to make a decision regarding point guard T.J. McConnell, whose current contract also expires at the end of the 2024-25 season. Shams Charania of The Athletic and Stadium reported in June that the Pacers are looking to lock in McConnell "long-term."

Another notable contract or trade to negotiate during the upcoming season is that of shooting guard Bennedict Mathurin, who is currently set to play the 2025-26 season in a $9.19 million club option.

The Pacers have not made any luxury tax payments since 2005, per Spotrac, but the team likely expects that to change going forward as the front office looks to build its roster around a core duo of Tyrese Haliburton and Pascal Siakam. Both Indiana stars are signed through at least the 2027-28 season.

With Turner and McConnell unsigned, the new contract makes Nembhard currently the third highest-paid player on the roster behind only Haliburton and Siakam,/ for the 2025-26 season.

That position raises questions about Nembhard's position on the Pacers' depth chart with Mathurin still on the roster.

Nembhard established himself as a key part of the rotation the Pacers hope can contend for a title last season. After starting the campaign on the bench, Nembhard slid into the starting five in February and kept his place for the rest of the season.

During the Pacers' 17-game playoff run, Nembhard averaged 14.9 points, while adding 3.3 rebounds and 5.5 assists, as Indiana made it back to the conference finals for the first time in a decade. He shot 56.0 percent from the field and 48.3 percent from the three-point line.

Now that the Pacers have committed to keeping Nembhard in Indiana for the next four seasons, the team will need to decide whether to play him alongside Haliburton on the first unit or have him drive offense on the second.