Buddy Hield is extension eligible, but it may be hard to find a deal.

The Indiana Pacers and guard Buddy Hield are at a crossroads. The veteran guard is eligible for a contract extension, but according to Pacers general manager Chad Buchanan, talks are at a halt.

“The business of basketball comes into play at times,” Buchanan said Tuesday. “We’ve had talks with him about an extension and those talks are at a halt I’d say right now. That’s not to say that they’re done.”

If there is no extension to be had, then Indiana has to think about a trade. Hield turns 31 in under three months and is on an expiring contract. The Pacers want to improve this season, but that is the type of player that a team thinking long term puts in trade conversations.

“We have no intention of trying to move Buddy. But it’s also our job to listen if opportunities come that help us improve the team. That’s what we have to do as a front office,” Buchanan said.

This situation is what it is because the Pacers offered an extension in the first place. Without the offer, and the knowledge that Hield isn’t interested in said offer, there would be no talk about what the next steps are. But the Pacers, and Hield, both having this information now is much better than finding out later.

Buchanan’s message that extension talks with the sweet-shooting guard aren’t done is noteworthy. Last season, Myles Turner seemed like he would be on the move without an extension with the blue and gold, but he received a new contract in January after a great season. Nothing is done with Hield until a decision is made.

But there are many unique factors at play for both sides, and some of them are competing against each other.

The salary cap is an element that could cause friction. On one side, Hield and his agents could look at the rising cap environment and claim that a raise is needed. He is worth a similar percentage of the cap if his effectiveness is maintained. On the other side, though, is the Pacers cap space goals. They could have upwards of $50 million in room next summer depending on how much the cap grows and some contract decisions (they would also be without some key players in this scenario). A Hield extension now would cut into that number.

Because of those dynamics, perhaps an extension that gives Hield roughly the same annual value in the coming seasons would be a happy medium. But Hield may not want that.

The 30-year old could look at some signings this summer and think that a raise is coming his way. Bruce Brown, who joined Hield’s team, got $22.5 million per season in free agency. Kyle Kuzma and Dillon Brooks both received over $20 million per year this summer. As a solid starter, Hield could look at those deals and think it’s plausible that a big contract is coming his way. At his age, it could be his final significant contract as a pro.

On the flip side, some capable starters were squeezed out in free agency. Eric Gordon, Kelly Oubre and Christian Wood all received minimum-salary deals. Dennis Schroder, Gabe Vincent, and Donte DiVincenzo saw their contracts go into the Mid-Level Exception. Hield is better than most of those players, but the new Collective Bargaining Agreement merging with the old NBA reality has changed the amount of money available.

If Hield wants a bigger deal, he may want to be with a team that either has a ton of cap space (like the Pacers) or one that needs his Bird Rights to keep him. That way, he has the most options to get a significant contract. A team that cannot retain Hield using cap space could be more incentivized to pay him a large salary and keep him instead of losing him for nothing, while a cap space team may need the veteran on a sizable deal to reach the salary floor. There could be options.

Indiana may want to set a hard limit on Hield’s salary. They have a ton of cap space next summer, but with Tyrese Haliburton’s extension kicking in soon as well as free agency for Myles Turner, Bruce Brown, and Andrew Nembhard within the next two summers, the blue and gold could get expensive. Hield’s extension could be short enough that it doesn’t overlap with those contracts, but why would he want that? As a veteran, he may only have one more shot at a big, lengthy contract.

The way to merge the goals of both parties could be a renegotiation and extension. Doing that would allow Indiana to give Hield a raise this season using their cap space and then drop his salary by as much as 40% next season, with an extension following. That would be a way for Hield to get the money he desires but have a lower, less prohibitive cap hit in future seasons.

That is how Turner’s contract extension was structured. But Turner is younger and only added two years to his deal. Hield’s situation is different — both in terms of age and his fit with Indiana. His minutes do come in similar roles to younger players like Bennedict Mathurin, Aaron Nesmith, and Nembhard, and that doesn’t even account for Indiana’s depth at other spots. The Pacers may view Hield’s contract differently if he is a depth piece.

Hield is a good player. He canned more threes than anyone in the NBA not named Klay Thompson last season, and he pairs extremely well with Haliburton. That matters. He is valuable both to the Pacers and to other teams, and his contract situation isn’t complicated due to lack of talent.

Instead, there are many factors at play that make a Hield extension difficult. If either side has a change in circumstance, perhaps a deal could get done. But it may go into the season, and if nothing happens, trade talk will linger. Otherwise, the Pacers will have to be nervous about being unable to re-sign or sign-and-trade Hield next summer.