The Pacers are waiving two-way contract guard Taelon Peter, narrowing the competition for their three two-way contracts down to four players, a league source confirmed to IndyStar on Monday. Michael Scotto of Hoops Hype had the story first.
Purdue All-American point guard Braden Smith, forwards Kobe Brown and Jalen Slawson and guard Ethan Thompson remain in the competition.
The Pacers drafted Peter out of Liberty with the 54th pick of the second round in 2025. He earned a two-way contract and maintained that status throughout the 2025-26 season, getting more NBA playing time than expected thanks to the avalanche of injuries that led to the Pacers posting a franchise-worst 19-63 record. Peter appeared in 38 NBA games and averaged 4.5 points, 1.6 rebounds and 1.1 assists per game. He shot 38% from the floor and 32.8% from 3-point range. Meanwhile in 20 G League games with the Noblesville Boom, he averaged 14.8 points, 5.1 rebounds, 3.9 assists and 1.6 steals per game.
Peter went to Las Vegas with the Pacers for NBA Summer League, which concluded Saturday. He averaged 10.4 points per game there — the third-highest figure on the team — to go with 1.8 rebounds, 1.8 assists and 1.2 steals per game. He shot 50% from the floor and 35.7% from 3-point range.
However, it seemed likely that Peter would be one of the odd men out. Smith, an All-American at Purdue and Mr. Basketball at Westfield High School, agreed to a two-way contract after being selected with the No. 38 pick in the 2026 draft, often a spot that comes with a standard contract. It seemed unlikely the Pacers would not come through with a two-way deal for him. They recently signed Brown to a two-way contract after he spent last season on a standard deal. Thompson averaged 26.9 points per game last season in G League play and scored a combined 31 points in two games for Puerto Rico this summer in World Cup qualifying games. Slawson was the Pacers’ leading scorer in Summer League with 20.8 blocks per game and he also led all players at Summer League with 16 blocked shots.
Dustin Dopirak covers the Pacers all season. Get more coverage on IndyStarTV and with the Pacers Insider newsletter.
This article originally appeared on Indianapolis Star: Pacers waive Taelon Peter, narrow two-way contract competition to four
