Moving Andrew Nembhard before the trade deadline could help avoid a tax issue next season, but the Pacers are more focused on winning than their financial future, according to Fred Katz of The Athletic.
Nembhard, a 25-year-old guard, is only making $2MM this season, but that will increase to $18.1MM when his extension begins in 2025/26. Katz notes that Indiana could deal him now for a low-salaried player and create a significant savings on next year’s payroll. Because he was a second-round pick in 2022, Nembhard isn’t affected by base year compensation language in the collective bargaining agreement.
However, Katz hears that the Pacers view Nembhard as part of their future and plan to hold onto him even if it means going into luxury tax territory for the first time in 20 years. Sources tell Katz that teams have inquired about Nembhard’s availability, but haven’t been able to make any progress in trade talks.
Nembhard is averaging career highs with 10.6 points, 3.5 rebounds and 5.2 assists per game in his third NBA season. Katz notes that Indiana is better by 15 points per 100 possessions when he’s on the court, which is the fourth-best differential in the league.
The Pacers currently have 10 players under contract for next season at a total cost of about $165MM, which is $23MM short of the projected tax line. That’s without starting center Myles Turner, who is on an expiring $19.9MM contract and has been the subject of recent trade rumors.
Indiana would almost certainly be in tax territory if Turner is re-signed, but league sources tell Katz that “all signs” point to Turner not being traded before next week’s deadline. He adds that the Pacers have surged to fifth place in the East after a slow start and have no desire to weaken their roster before the playoffs.
Katz hears that Obi Toppin, who’s on the books for $14MM next season, has been discussed with other teams, though sources tell him there “hasn’t been much traction” toward a deal. Katz suggests Indiana may be able to trade Toppin for an expiring deal now, whereas waiting until the summer and just unloading his contract at that point might mean giving up draft assets to anyone willing to take on his contract.