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The Pacers exercised Sheppard's third-year team option for the 2025-26 season Friday, Brett Siegel of ClutchPoints.com reports.
Sheppard will earn $2.79 million in the third season of his rookie deal. The 23-year-old wing is expected to be a fixture on the Pacers' second unit after averaging 4.4 points, 1.6 rebounds, 0.9 assists and 0.9 three-pointers in 14.3 minutes per game across 57 appearances as a rookie in 2023-24.
