Were Pacers Overthinking Controversial Contract Extension Decision?

Indiana made a questionable decision when it came to extending a young talent.

Apr 7, 2023; Indianapolis, Indiana, USA; Detroit Pistons guard Killian Hayes (7) shoots the ball while Indiana Pacers guard Andrew Nembhard (2) and forward Isaiah Jackson (22) defend in the second half at Gainbridge Fieldhouse. Mandatory Credit: Trevor Ruszkowski-Imagn Images / Trevor Ruszkowski-Imagn Images

The Indiana Pacers made a questionable decision when it came to extending a young talent ahead of this year's October 21 deadline.

Before he incurred a probably season-ending Achilles tear after just five games this year, Pacers center Isaiah Jackson was looking like he might earn a pretty penny as a restricted free agent.

The 6-foot-10 big man, 22, was selected with the No. 21 pick out of Kentucky in the 2021 NBA Draft. He has spent all of his has spent all four of his pro seasons with the Pacers. Across his five contests for Indiana this year (including one start), he averaged 7.0 points on 60.9 percent shooting from the field and 50 percent foul line shooting, plus 5.6 rebounds, 1.6 blocks, 1.0 assists and 0.6 steals — those are fairly efficient stats in just 16.8 minutes of action. And he was looking all the more critical for Indiana's playoff hopes with starter Myles Turner's other backup center, James Wiseman, done for the year with his own Achilles tear. Now, sans a healthy Jackson, Indiana is reportedly circling the market for some more big man insurance.

Read More: Pacers Looking to Upgrade Frontcourt After Multiple Season-Ending Injuries

Indiana could have avoided any long-term concerns for retaining Jackson but just extending him at the aforementioned October 21 deadline. Now, with Jackson rehabilitating all year and his post-injury future tenuous at best, the team looks like it made the right move by waiting.

Per Tony East of Forbes, part of the reason the Pacers opted to sign Jackson to an extension deal for up to five seasons was due to long-term salary cap considerations. East notes that Jackson has been solidly growing every season as a two-way option for Indiana off the team's bench, especially around the rim.

"Next season (2025-26, which would have been year one of a Jackson extension), the Pacers already have 10 guaranteed contracts on the books. That doesn’t even account for James Wiseman’s team option or any draft picks that could be made. The roster is already somewhat full," East writes. "On top of that, between small raises to eight players and a significant pay bump to another (Andrew Nembhard, thanks to a contract extension), the Pacers already have committed $165 million in salaries for next season. That could change if trades are made or if Wiseman/draft picks enter the picture."

Wiseman was healthy for all of one game with his new team before getting injured. One wonders if Indiana will want to keep both Wiseman and Jackson rostered heading into next season.

"The salary cap for the 2025-26 campaign currently projects to be $154.6 million. The luxury tax line would land at $187.9 million in that case. Indiana is well over the cap with just 10 players and just $22 million shy of the tax already," East adds. "They are possibly going to have another year with tight spending — a foreseeable path after the acquisition of Pascal Siakam. Thus, extending Jackson’s contract was more than just a basketball decision. On top of Jackson’s free agency next summer, the Pacers will be dealing with Turner’s future. The starting big signed a lengthened contract in 2023 and isn’t eligible for an extension, so he will be an unrestricted free agent in 2025. Turner’s new deal could start in the $25 million-plus range, which would put Indiana near the luxury tax line."

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