The Indiana Pacers have secured wing Kelly Oubre Jr. on a two-year, $16.5 million contract that is fully guaranteed. The agreement gives Indiana a proven scorer off the bench and adds much-needed size to a wing group that has lacked depth.

The deal will be funded in part with a chunk of the team’s non-taxpayer mid-level exception. By signing Oubre, the Pacers sit roughly $6.5 million above the luxury-tax line and about $1 million below the first apron, with all 14 roster spots filled. Historically the franchise has avoided paying the luxury tax, a factor that helped shape last summer’s decision not to re-sign center Myles Turner.

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Oubre averaged 15.4 points per game in 50 regular-season contests with the Philadelphia 76ers last season. His scoring punch provides an immediate boost for Indiana’s bench, while his physical frame gives the Pacers a legitimate defensive presence on the perimeter. The wing’s size allows him to guard multiple positions and should help improve Indiana’s overall perimeter defense.

General manager Chad Buchanan identified wing depth as a priority in the offseason, and Oubre directly addresses that need. The veteran’s ability to create his own shot and defend multiple roles complements a core that includes Tyrese Haliburton and Pascal Siakam, giving the team a flexible option when the starters need rest.

The signing also brings the future of the 2023 first-round picks Jarace Walker (eighth overall) and Ben Sheppard (26th overall) into sharper focus. Both players have experienced up-and-down stretches in Indiana and have yet to cement long-term roles. Walker is slated to earn about $8.5 million next season, while Sheppard’s salary sits just over $5 million; both will become restricted free agents next year. Managing their minutes alongside Oubre’s veteran presence will be a key task for the coaching staff.

Overall, the Pacers are betting that a modest increase in payroll, balanced by the use of the mid-level exception, will keep the roster competitive without triggering the luxury tax. Oubre’s contract reflects a willingness to invest in proven talent while still preserving flexibility for the development of their young wings.