Kelly Oubre Jr. to sign 2-year contract with Pacers: How he helps Indiana

The Indiana Pacers and wing Kelly Oubre Jr. have agreed on a two-year, $16.5 million contract, according to team sources who spoke on condition of anonymity because the deal has not been completed. The deal will be fully guaranteed, per league sources.

The potential for significant minutes at small forward factored into Oubre’s decision, the sources said.

Pacers general manager Chad Buchanan said last week that wing was one of two positions, along with center, that his team needed to prioritize this offseason.

“If you look at our bench right now, I think you kind of see where we have proven veteran players at,” Buchanan said in his post-draft news conference last week. “The wing position would probably be one (to evaluate). If we can add some wing depth that would help.”

Oubre, who averaged 15.4 points in 50 regular-season games with the Philadelphia 76ers last season, adds an immediate scoring punch off the bench for the Pacers. He also brings legitimate size on the wing, which should help improve Indiana’s perimeter defense.

The Pacers will use a chunk of their non-taxpayer midlevel exception to sign Oubre. The agreement puts them in rare territory, sitting $6.5 million above the luxury-tax line and a mere one million below the first apron with 14 roster spots filled. Historically, the Pacers have never paid the tax — it was a key reason the franchise did not re-sign Myles Turner last summer.

Oubre’s arrival also raises questions about the roles of 2023 first-round draft picks Jarace Walker and Ben Sheppard, who were selected eighth and 26th, respectively. Both wings have had up-and-down careers in Indiana, and they’ve yet to solidify themselves as surefire pieces of the future. Walker will make about $8.5 million next season, while Sheppard will make just over $5 million. Both are set to become restricted free agents next year.