INDIANAPOLIS, INDIANA – NOVEMBER 28: RayJ Dennis #10 of the Indiana Pacers drives to the basket against Sharife Cooper #13 of the Washington Wizards during the second half of the NBA basketball game between the Washington Wizards and the Indiana Pacers at Gainbridge Fieldhouse on November 28, 2025 in Indianapolis, Indiana. (Photo by Michael Hickey/Getty Images)
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INDIANAPOLIS – The Indiana Pacers have made changes to their two-way contract setup. On Sunday, the team waived guard RayJ Dennis and used the newly-created roster spot to sign guard Ethan Thompson.
Dennis has been with the Pacers since early January of this year. The 24-year old point guard spent his rookie season with the franchise and appeared in 11 outings, averaging 2.7 points and 1.3 assists per game in year one. His two-way agreement was two years in length, so the youngster stuck with Indiana throughout the offseason and into his second campaign.
This year, Dennis has been more involved with the Pacers. Mounting injuries forced the team to rely on its two-way players, and that often included Dennis. He has 13 appearances this season, and about half of them came in situations in which Dennis was a part of the team’s rotation. He had 17 points against the Dallas Mavericks and five-plus assists on three occasions.
Why did the Pacers move on from Dennis?
But the Pacers signed point guard Monte Morris in early November, and point guards Andrew Nembhard and T.J. McConnell returned from injuries soon after. That eliminated Dennis’ role, and he has only played in garbage time since November 3.
The Baylor product averaged 4.6 points and 2.0 assists per game for the Pacers this season. With two-way point guard Quenton Jackson currently sidelined due to injury, the Pacers are light on depth behind Nembhard and McConnell. But they still opted to make a move and bring in Thompson as the team gets healthier in general.
Two-ways contracts don’t count against the salary cap, so Dennis won’t carry any cap charge for the Pacers the rest of the season. His contract had not yet fully guaranteed for the season, either.
In comes Thompson, who has never played in an NBA regular season game but has nine preseason appearances under his belt with the Orlando Magic, Chicago Bulls, and Miami Heat. He spent his most recent training camp with Miami, where he averaged 6.4 points per game across five outings.
Miami Heat guard Ethan Thompson (55) drives against Orlando Magic guard Jase Richardson (11) during the second half of a preseason NBA basketball game, Sunday, Oct. 12, 2025, in Orlando, Fla. (AP Photo/Kevin Kolczynski)
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“I dream about playing in the NBA,” Thompson said during training camp. He played for the Heat in a preseason game in Puerto Rico, and he’s represented the Puerto Rican national team in the past. “Once we step on the lines, it’s no different from any other game.”
What does Thompson bring to the Pacers?
Most of Thompson’s time as a professional has come in the G League. He was with the Sioux Falls Skyforce this season and averaged 26.9 points per game across eight outings. Last season, Thompson earned a two-way contract with the Magic but didn’t appear in an NBA game.
He did, however, spend time with the Osceola Magic. And with Osceola, he played against the Pacers G League team, then the Mad Ants, in the G League playoffs. He went off for 29 points that night and made six three-point shots. He’s been a dynamic player in the G League.
Across his time at that level, Thompson has averaged over 18 points per game. He’s been an improving play finisher from all over the court and chips on the glass and with ball movement. Now, he gets an opportunity in the NBA with the Pacers.
On his two-way deal with Indiana, Thompson is eligible to be active 39 times this season. He’s signing a two year, two-way deal, so he’s under contract for the 2026-27 season as well.
With a two-way contract, Thompson can play both with the Pacers and their G League affiliate team, the Noblesville Boom. The Pacers are currently missing Obi Toppin, Johnny Furphy, and Aaron Nesmith due to injury, so they have room for an off ball forward/guard to grab a few minutes on occasion. Garrison Mathews was getting those chances, but his hardship deal ended after Saturday.
Thompson will wear jersey number 55 for the Pacers. On a two-way deal, his salary will be half of the NBA’s minimum salary, prorated for the amount of time left in the season.