Nate Taylor

nate.taylor@indystar.com

He has a large tattoo on his left arm, the area code 317 alongside the Indianapolis skyline. Jeff Teague is from Indianapolis, was raised in Indianapolis and — after seven years in the NBA — he will play for the team whose city is on his arm.

In their first significant move of the offseason, the Indiana Pacers acquired Teague from the Atlanta Hawks on Wednesday in a three-team trade, a league source confirmed to IndyStar. The move will not become official until July. In exchange, the Pacers sent George Hill, also an Indianapolis native, to the Utah Jazz. The Hawks received the 12th overall pick in Thursday’s NBA draft from the Jazz. The trade was first reported by Yahoo Sports.

The acquisition of Teague, who starred at Pike High School, gives the Pacers what President Larry Bird has sought the past two seasons: an elite point guard.

With the Hawks, Teague was a skilled ballhandler who scored in transition, made 3-pointers with consistency and delivered the ball to teammates on time, a skill the Pacers lacked for much of last season. He averaged 15.7 points and 5.9 assists in 79 games last year.

Doyel: Jeff Teague for George Hill? A steal for Pacers

Although Bird accomplished one of his biggest priorities this offseason, he and the rest of the Pacers’ front office still have work to do. Teague arrives in Indianapolis with a one-year, $8 million contract. For the Pacers to further solidify their point guard position, Bird’s next task will be convincing Teague to sign a long-term deal before next season starts.

When free agency begins next week, the Pacers could have as much as $35 million in cap space to spend. The team is unlikely to re-sign Solomon Hill, Jordan Hill or Ian Mahinmi, all of whom could command sizable deals and find better opportunities elsewhere. The Pacers could offer Teague a contract extension for as many as three years and worth close to $50 million.

The issue will be if Teague is willing to sign a long-term deal since he could wait until next offseason and command more money in free agency. The salary cap next year is expected to rise to unprecedented levels, beyond the close to $94 million cap this summer.

Teague wanted a more defined role after having to split time with Dennis Schröder in Atlanta the past two seasons.

“I have always been a starter,” Teague said in May. “I would love to be a starter.”

Teague will have that responsibility with the Pacers. He assumes the starting point guard job with Monta Ellis, Paul George and Myles Turner expected to join him in the starting lineup. The power forward position remains open with the likely departure of Mahinmi.

Teague hinted at the possibility of playing for a new team after the Hawks were eliminated from the playoffs by the Cleveland Cavaliers. He removed any affiliation from the Hawks from his social media accounts. Last month, he sent out a post implying that he played part of the season with a torn patella tendon, including the hashtag #theywontsaythatpart. The post was eventually deleted.

Teague showed his frustration when he did not play in the fourth quarter of the Hawks’ season-ending loss to the Cavaliers. The Hawks agree to the trade Wednesday with the idea of having Schröder replace Teague while also freeing up room under the salary cap.

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What finally made the deal work for the Pacers and Hawks — a trade that was first discussed in February before the NBA’s trade deadline — was the involvement of the Jazz. Utah also wanted to upgrade at the point guard position and felt George Hill was a veteran who could lead the Jazz back to the playoffs.

Jazz General Manager Dennis Lindsey was eager to acquire Hill, according to an IndyStar source. Lindsey is familiar with Hill, serving as the assistant general manager in San Antonio when the Spurs drafted Hill in 2008.

Hill averaged 12.1 points and 3.5 assists after former coach Frank Vogel decided to have Ellis be the primary ballhandler. Hill, who starred at Broad Ripple High School and IUPUI, was the Pacers’ best 3-point shooter (40.8 percent). But he struggled at several key points during the season to be aggressive enough to become a viable third scoring option for the Pacers.

In swapping Hill for Teague, the Pacers get the younger player, the more aggressive player and the player who has appeared in an All-Star Game.

What is left for Bird, however, is to ensure that Teague stays a Pacer beyond next season. If Bird accomplishes that, he will complete his mission of having an elite, prototypical point guard to lead the Pacers for the foreseeable future alongside George and Turner.

Call IndyStar reporter Nate Taylor at (317) 444-6484. Follow him on Twitter: @ByNateTaylor.

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