ATLANTA, GEORGIA – JANUARY 26: Ethan Thompson #55 of the Indiana Pacers in action during the fourth quarter against the Atlanta Hawks at State Farm Arena on January 26, 2026 in Atlanta, Georgia. (Photo by Todd Kirkland/Getty Images)
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INDIANAPOLIS — The Indiana Pacers have waived guard Ethan Thompson, who was signed to a two-way contract.
Thompson initially signed a two-year, two-way deal with Indiana in late November of 2025. He entered the team’s rotation fairly quickly and contributed on more than one occasion, a surprise given that 2025-26 was his first year playing in NBA games.
By season’s end, Thompson had appeared in 32 outings for the blue and gold while starting 13 times. He averaged seven points per game but struggled with his efficiency, shooting 37.8% from the field.
In the G League, Thompson was fantastic last season and posted nearly 27 points per game. His shot accuracy was excellent for the Noblesville Boom, and he played well for Puerto Rico during international play in early July.
Why did the Pacers waive Thompson?
This summer, a few offseason signings put the Pacers in a unique situation regarding their 15th and final roster spot. They can technically put a player with zero or one year of service on their standard roster but can’t afford a veteran’s minimum deal thanks to their hard cap situation. That has left draft pick Braden Smith in limbo and, somewhat in turn, Thompson.
That’s because the original plan for the Pacers was to sign Smith to a two-way contract, but they were unable to do so since Thompson filled one of the team’s three two-way openings, and the other two were occupied by Kobe Brown and Jalen Slawson – the latter two both signed their contracts in July.
While Indiana could still change course and give Smith a standard roster spot, waiving Thompson opens up a two-way contract slot for them to sign their draft pick, if they are so inclined. The front office could opt to simply leave their 15th roster opening unused for a while in the name of spending flexibility.
Thompson scored 11 points in his third game with the Pacers and reached a career-high 24 against the Chicago Bulls on April 1. He flashed scoring abilities in multiple games but never strung together solid outings.
Reporting from earlier on Thursday suggested that Thompson has agreed to a deal with Partizan, a Serbian club that competes in the EuroLeague. So this waiver by Indiana both allows them to figure out a resolution with Smith and frees up Thompson to explore overseas possibilities.
The Pacers now have 16 players under contract – 14 on standard agreements and two on two-way deals. They can have up to 21 players signed in the offseason but are currently limited to Exhibit 10 pacts, their two-way opening, and lesser experienced minimum salary contracts. Once the regular season begins, they can have up to 15 players on standard contracts and three on two-way deals.
Their next order of business will be signing Smith, who the Pacers chose with the 38th overall pick in June’s draft. He struggled somewhat in summer league for the blue and gold, but the team believed in his skills displayed at Purdue enough to add him to the franchise.