The Two-Way Tango: Pacers’ Roster Shuffle Raises Questions About Team’s Priorities

The Indiana Pacers’ decision to waive guard Ethan Thompson has sparked speculation about the team’s roster strategy and priorities. On its face, the move appears straightforward – clearing a two-way contract slot for potential new additions. However, upon closer examination, it reveals a complex web of factors at play.

Thompson was signed to a two-year deal in November 2025 and quickly became a regular contributor, starting 13 games and averaging seven points per game. His performance was impressive given his rookie status, and one might expect him to be given more opportunities to develop. Instead, the Pacers’ decision-making process seems to have been influenced by their hard cap situation.

The team’s inability to sign draft pick Braden Smith to a two-way contract – due in part to Thompson taking up one of the available slots – has led them to prioritize flexibility over player development. This approach is curious, especially given that Thompson was a solid contributor and had shown flashes of brilliance.

The Pacers’ use of two-way contracts as a means of managing their roster is not new. However, it’s becoming increasingly clear that this strategy comes with its own set of challenges. The team can only have up to three players on two-way deals at any given time, which limits their ability to develop young talent and create depth.

The timing of Thompson’s waiver is also noteworthy. Reporting suggests he has agreed to a deal with Partizan, a Serbian club competing in the EuroLeague. This raises questions about the Pacers’ commitment to developing their young players. Are they willing to let Thompson explore overseas possibilities rather than giving him more opportunities to grow within the organization? The answer seems clear: the team is prioritizing roster flexibility over player development.

The Pacers now have 16 players under contract, with two on two-way deals and the rest on standard agreements. They can have up to 21 players signed in the offseason but are currently limited by their hard cap situation. Their next order of business will be signing Smith, who struggled in summer league but was believed to have enough talent to make it to the franchise.

The waiver of Thompson is a significant development in the Pacers’ offseason plans. It’s not just about clearing roster space or adding new players; it’s also about the team’s priorities and values. Do they prioritize flexibility over player development? Are they willing to let young players explore overseas opportunities rather than giving them more chances to succeed within the organization?

The Pacers’ decision-making process will likely continue to be a topic of debate in the coming weeks and months. As they navigate their roster situation, every move has consequences – for players, fans, and the team itself. The waiver of Thompson may seem like a minor development on its own, but it reveals a more complex web of factors at play.