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Taelon Peter has signed a two-way contract with the Indiana Pacers that spans two years, per ESPN’s Bobby Marks via Sports Business Classroom.

Selected with the 54th pick in the 2025 NBA Draft, Peter becomes the fourth player taken in the second round this year to agree to a multi-season two-way deal.

He joins fellow 2025 draftees Rocco Zikarsky (Timberwolves), Javon Small (Grizzlies), and Kobe Sanders (Clippers), who have also secured two-year two-way agreements.

Peter’s contract includes a partial guarantee of $85,300 at signing.

However, a substantial increase in guaranteed money is on the table: if he remains with the Pacers through the beginning of the regular season, half of his total $636,435 salary for the year will become fully guaranteed, sources tell Hoops Rumors.

This structure gives Indiana some flexibility while providing Peter a pathway to greater financial security should he make it through training camp and onto the season-opening roster.