George Hill was, by all accounts, exactly what a young Indiana Pacers team needed this past season.

The 37-year old guard was sent to the franchise at the trade deadline in February, and he instantly made an impact. Several young players praised his leadership, and he gave the team decent on-court contributions as well.

By the conclusion of the season, Hill averaged 5.2 points and 1.9 assists per game in 11 appearances for the Pacers. He started one time and scored 17 points in the team’s season finale. At his best, he provided useful depth.

“George Hill has meant so much to this organization,” Pacers President of Basketball Operations Kevin Pritchard said.

Hill was a great veteran, providing advice and lessons in the locker room. The Indianapolis native has been in the league for 15 seasons, so the inexperienced Pacers had a resource to rely on in Hill. He, along with James Johnson, were crucial voices for the blue and gold.

Now, Hill is a free agent. He just finished a two-year, $8 million deal that he signed with the Milwaukee Bucks in 2021. Because he was traded while still on that contract, Indiana inherited his Early Bird rights.

That means that if the Pacers keep Hill’s $5.2 million cap hold on the books in free agency, they can re-sign the veteran to a deal that is up to four years in length and starts at a number that is 105% of the NBA’s average salary. The maximum raises would be 8% of the first year salary in the contract. The Pacers could simply sign Hill to a bigger deal using salary cap space, but the veteran guard’s contract will certainly fit within the parameters of the Early Bird exception. He isn’t worth more than his prior salary.

Truthfully, at Hill’s age and production, a minimum contract could be enough to retain his services. Such a deal would pay him roughly $3 million, though the Pacers cap hit would be closer to $2 million.

As a mentor, and as a guard who can still contribute when needed, Hill has value. Especially to the Pacers, a franchise he wants to retire with.

“I would love the opportunity [to be back],” Hill said of free agency. “Like I said, I would love to be like a Udonis [Haslem] but play.”

The finances shouldn’t be an issue for the Pacers or Hill. Indiana has plenty of resources to afford the veteran. The questions about keeping Hill are more about opportunity cost.

The blue and gold only have three standard roster spots this summer, at least prior to the NBA Draft. Hill, along with Oshae Brissett and James Johnson, are entering free agency. But the Pacers have four draft picks and tons of cap space to work with.

That’s where the opportunity cost lies. Retaining Hill, which would be a fine decision, would fill one of those roster spots and force Indiana to be stingy with how they use their picks or cap space. They couldn’t use a roster spot on Hill and something else. For a team that has playoff goals next season, that’s a tricky proposition.

Trades may be coming for the Pacers to sort out their roster crunch. They have already agreed to two different trades involving draft picks this week, and more could be coming. If more players are sent away than brought in, then keeping Hill would come with less opportunity cost — and thus be an easier decision for the Pacers.

“He loves it here, and that means a lot to me,” Pritchard said of Hill. He noted that Hill was a great resource for the Pacers’ younger point guards, such as Andrew Nembhard and Tyrese Haliburton.

Indiana will also have to decide if they need both Hill and Johnson next season. Both players are wonderful veterans, but using two roster spots on locker room pieces who don’t hit the hardwood much may not be the best use of assets for the blue and gold. That’s something they will have to wrestle with prior to free agency.

The Pacers must determine if they need to have any offer they make to Hill be a fully guaranteed deal. Johnson’s contract last year, for example, was completely non-guaranteed. That could be a way for the team to keep some flexibility while still keeping a valuable veteran around.

Truly, there are a lot of factors for the Indiana Pacers to consider with George Hill in free agency. But there is no doubt he has value for the team, and it would be a smart and justifiable move if the franchise retained him for another season.