Source: Indiana Pacers and guard Andrew Nembhard agree to three-year contract extension

Nembhard had been a key piece for the blue and gold in recent seasons

Apr 1, 2024; Indianapolis, Indiana, USA; Indiana Pacers guard Andrew Nembhard (2) shoots the ball while Brooklyn Nets center Nic Claxton (33) defends in the first half at Gainbridge Fieldhouse. Mandatory Credit: Trevor Ruszkowski-USA TODAY Sports / Trevor Ruszkowski-USA TODAY Sports

INDIANAPOLIS — The Indiana Pacers and young guard Andrew Nembhard have agreed to terms on a three-year contract extension, a league source shared with Pacers On SI. ESPN's Adrian Wonarowski was the first to report the agreement.

The new deal for Nembhard adds just under $59 million to his contract. Indiana will decline the team option on Nembhard's current deal that covers the 2025-26 season before the extension is signed, so the new three-year agreement for the Canadian guard will begin in 2025-26 and run through the 2027-28 season.

Nembhard's contract contains no options, a league source told Pacers On SI. He is now under contract for the next four seasons in Indiana.

The 24-year old guard was the 31st overall pick in the 2022 NBA Draft, and he signed a four-year, $8.58 million deal after being chosen by the blue and gold. Because it was a four-year contract, it could be extended on the two-year anniversary of it being originally signed. That date arrived on Monday. Two days later, the two sides agreed to terms — a possibility that had been reported earlier in the offseason.

Nembhard averaged 9.2 points and 4.1 assists per game last season. He had a massive defensive impact in the Pacers lineup and is the team's best perimeter stopper. In the postseason, he upped his averages to 14.9 and 5.5, respectively, giving many confidence that the young guard was headed for a strong third season.

"Nembhard has done this before. When Tyrese [Haliburton] is out of the lineup, he understands that he just needs to carry more of a load," Pacers head coach Rick Carlisle said during the playoffs. "You're seeing a young player that's tough minded, resourceful, and highly competitive that is fearless and that has embraced these challenges."

The Ontario native hit the signature shot of his career to date — a game-sealing shot against the New York Knicks — during the Eastern Conference Semifinals, and he finished the postseason with consecutive 24+ point, 9+ assist performances against the Boston Celtics. Many are bullish on his long-term outlook, and those outings only confirmed those feelings.

"Proud of his growth. It's a tough game when our starting point guard is not in the game... it takes a lot of maturity to be able to step in there and do what he did tonight," Pacers forward Pascal Siakam said of Nembhard's postseason successes. "He was incredible controlling the pace of the game, getting people to their spots."

Nembhard pairs well with Haliburton in the backcourt. The young ball handler joins Haliburton, Siakam, Obi Toppin, Aaron Nesmith, Jarace Walker, Ben Sheppard, and Johnny Furphy as players the blue and gold could have under contract for the next three seasons as they shift into an era defined by winning as opposed to development.

"It's enjoyable to play with these guys," Nembhard said. "We've got to get better as a team next year, and I think learning from some of these experiences may help us to do better in this position next year," he added.

The first season of Nembhard's extension covers the 2025-26 campaign and comes in at just over $18 million. He is about to play for Team Canada in the Olympic games. T.J. McConnell and Isaiah Jackson are also eligible for contract extensions this offseason in Indiana.

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