The Indiana Pacers recently waived guard Taelon Peter, who was on a two-way contract with the team. Peter signed a two-year, two-way deal with the Pacers in the 2025 offseason and played the entire 2025-26 season with Indiana. Despite dealing with injuries, the 24-year-old Liberty University product appeared in 38 NBA games, averaging 4.5 points and 1.6 rebounds per game. He was known for his shooting ability, but his NBA three-point percentage of 32.8% fell short of expectations, even adjusting for the deeper NBA three-point line.

Peter also spent time in the G League with the Pacers’ affiliate, the Noblesville Boom, where he averaged 14.9 points per game. However, his three-point shooting remained inconsistent at 36.3%, and his jump shot struggled to develop fully during his rookie year. Despite working on his playmaking and on-ball defense in the offseason, Peter faced stiff competition for a roster spot on the Pacers’ limited two-way contract group.

The Pacers’ decision to waive Peter was influenced by recent moves in the offseason. After drafting Braden Smith 38th overall in the 2026 NBA Draft and signing him to a two-way contract, the Pacers also signed Kobe Brown to another two-way pact. With only three two-way contracts allowed per team, this left Peter competing with Ethan Thompson and Jalen Slawson for the final slot. Slawson outperformed Peter during summer league, averaging 20.8 points and 6.4 rebounds over five games, making him a more valuable two-way candidate.

Additionally, the Pacers are navigating a hard salary cap and currently have 14 players signed to standard contracts alongside two two-way players. With the team needing two-way signees who are ready to contribute immediately, Thompson and Slawson fit better into the current roster plans than Peter. As a result, the Pacers made the move official on July 20, 2026, officially waiving Peter and narrowing their two-way contract group. The front office still has some work ahead in free agency to finalize the team roster.