The Indiana Pacers signed budding young center Myles Turner to a four-year rookie scale contract extension worth $80 million on Monday, according to The Athletic’s Shams Charania. The timing of the deal is odd, but it proves Indiana believes in its promising big man more than it believes it its cap space next season.
The Pacers could have waited
And it would have made financial sense to do so.
Indiana could have waited until next season to reach a deal on a contract extension — just like the New York Knicks did with Kristaps Porzingis — because teams are allowed to exceed the salary cap to re-sign their own free agents. The Pacers could have saved $10 million by waiting until after they used their available cap space to agree to terms with Turner on a deal. That would have given Indiana around $48 million to sign free agents next summer, when you account for the contract for their 2019 first-round pick and the cap hold for empty roster slots.
A max contract for a player with at least seven years of experience starts at at least $32.7 million in Year 1 and can go as high at $38.1 million for players with 10 or more years of experience. The Pacers could have signed a max free agent, additional role players and used their room mid-level exception worth $4.45 million before re-signing Turner to a four-year deal.
Instead, Turner’s contract will take a $20 million chomp into next summer’s payroll. The Pacers will also pay Victor Oladipo $21 million, Doug McDermott $7.3 million, and Domantas Sabonis, T.J. Leaf, Aaron Holiday and Monta Ellis — yes, Monta Ellis — a combined $10.8 million. That leaves them with $38 million to sign free agents: enough to sign a max player, but not really enough to do much else afterwards.
Turner is coming off a down season in Indiana where he averaged just 12.7 points, 6.4 rebounds and 1.8 blocks per game. He was banged up with injuries, including a dual sprain and strain in his shooting elbow. Turner saw his minutes decline in Year 3 after a standout sophomore season where he looked every bit the hype.
With this contract, the Pacers are betting he regains that form. Turner is a talented, versatile center, one who doubles as both an inside-outside scoring threat and rim protector for the Pacers. He can run the floor and play in the up-tempo offense Nate McMillan has installed. He’s a modern-day NBA big man: one who can shoot the three, finish on pick and rolls and get back on defense to defend the paint.
Indiana is somewhat doing itself a favor. If Turner takes the leap many project, his value could skyrocket next summer. Under the right circumstances, he could command a five-year extension — like Nikola Jokic, Devin Booker or soon-to-be Kristaps Porzingis — at the max level of $158 million, or he could have signed a four-year max offer sheet with another team.
Indiana inking the contract now saves them money should Turner explode onto the scene in a fashion that earns him Most Improved Player of the Year consideration. It also puts them at-risk if he regresses a second consecutive season.
The Pacers may not have been too confident in their ability to lure a superstar to Indiana, but if this deal proves anything, it’s that Indiana believes in its young big man. He’s given them a reason to believe in the past. Now, it’s up to Turner to reach the potential the world sees in him.
