Bird’s contract was set to expire at the end of July. He took over the Pacers’ basketball operations in 2003 after coaching the team from 1997 to 2000.
The Pacers made the National Basketball Association’s postseason for the first time in five years after finishing this season with a 20-18 run under interim coach Frank Vogel. Indiana went 37-45 overall and lost to the Chicago Bulls in the first round of the playoffs. Vogel took over as coach when Jim O’Brien was fired in late January.
“The past few months have been the most enjoyable since I took over,” Bird said in a statement. “To see our young players develop, to see us make the playoffs and then to see us compete in a hard-fought series with Chicago are indications we are headed in the right direction. It has made me even more determined to help this team improve further and go to the next level.”
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