Source: Tyrese Haliburton contract contains no player option, 15% trade kicker

Haliburton's contract details have become known

Tyrese Haliburton has officially signed a contract extension with the Indiana Pacers. The All-Star guard is now tied to the franchise going forward, a significant move for the blue and gold in their aspirations to return to being a contender.

When the extension was originally reported, it was simply described as a five-year, $260 million deal. That is the maximum agreement that Haliburton was eligible for in an extension, but it doesn't perfectly describe the full details of the contract.

AllPacers has learned more specifics of the framework. The most important detail is that there are no options in the contract, per a league source. The extension is for five guaranteed seasons, meaning that Haliburton is under contract with the blue and gold through the 2028-29 campaign. That's a ton of time for the Pacers to build with their star guard.

"I'm really excited that it got done. This organization showed how valuable I am in how fast that they got it done," Haliburton said of his new contract.

In order for Haliburton to actually have a $260 million deal, he would have to achieve a performance incentive in his contract that bumps his maximum salary up to 30% of the salary cap instead of 25%. If he does not reach his incentives, then his maximum salary would be $217 million. Both the $260 million and $217 million numbers require the salary cap to jump by 10% next season, which is not a certainty.

In order for Haliburton to have his salary be 30% of the salary cap, he must make any All-NBA team in the 2023-24 season, AllPacers has learned. MVP and Defensive Player of the Year would also get Haliburton up to a 30% max salary. If he doesn't reach those achievements this coming season, he will make 25% of the salary cap in 2024-25 and then have eight percent raises from that figure in the ensuing seasons.

Haliburton also has a 15% trade kicker in his contract, AllPacers has learned. That means Haliburton will get a bonus of 15% of the amount of salary remaining on his deal if he is traded by the Pacers.

The trade bonus and the most lenient possible incentive structure are pros for Haliburton, and the lack of player option is a victory for the Pacers. It's a win-win contract. Now, the Pacers challenge is about building around Haliburton going forward.

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