Holiday had non-Bird rights in Indiana. The most the Pacers could offer him for the 2020-21 season without dipping into the midlevel exception was $5.7 million, according to ESPN's Bobby Marks. He will make $6 million in 2021-22 and $6.3 million in 2022-23, per Marks.
Holiday, 31, has bounced around the league since joining the Philadelphia 76ers as an undrafted free agent in 2012. The Pacers, with whom he played on a one-year deal last season, were his seventh team.
A 6-foot-6, 180-pound guard, Holiday has built a reputation as a consistent wing defender who can guard multiple positions despite his slender frame. He also proved to be a terrific 3-point shooter, hitting 40.5% from beyond the arc last season for the Pacers.
He finished the season with averages of 8.3 points, 3.3 rebounds, 1.3 assists and 1.2 steals per game.
In Indiana, Holiday teamed with his brother Aaron, who has been with the Pacers since they chose him in the first round of the 2018 draft. Their brother Jrue played with the New Orleans Pelicans last season but recently reached agreement with the Milwaukee Bucks, where he'll team with Giannis Antetokounmpo.