The team also announced it re-signed forward Josh McRoberts.

The move was an important one for team president Larry Bird, Indiana's president of basketball operations. If Tinsley clears waivers, none of the players who have had legal problems or were involved in the brawl between Pacers players and Pistons fans in 2004 will remain on the roster.

"This ends a very difficult period for all parties involved," Bird said in a statement. "We are pleased to have this resolved."

Tinsley has career averages of 10.4 points and 7.0 assists, but he has been hampered by injuries and legal problems in recent years. The Pacers told him not to report to training camp last season and did not allow him to play. The NBA players' union filed a grievance for him in February, but the arbitration hearing scheduled for next week has been canceled.

Tinsley was owed $14.7 million over the next two years. The team did not release details of the resolution and says it will have no further comment.

Tinsley has been with Indiana since 2001-02, and was hampered by injuries and legal problems in recent years. The Pacers told him not to report to training camp last season, and did not allow him to play.

"Jamaal is happy to be moving on," Tinsley's agent, Raymond Brothers, told The Associated Press on Wednesday night. "He's sorry it didn't work out for the Pacers. He appreciates the opportunity he had there. He's looking forward to turning over a new chapter in his life, starting over and carrying on with his career."

Tinsley was connected with three late-night conflicts in a 14-month span.

He was there when Stephen Jackson fired several shots into the air before being hit by a car at an Indianapolis strip club in October 2006.

He faced a felony charge of intimidation and misdemeanor counts of battery, disorderly conduct and intimidation after a bar fight in Indianapolis in February 2007, but agreed with prosecutors last year that if he stayed out of trouble for two years, all charges would be dropped.

In Dec. 2007, someone in a truck fired shots from an assault rifle at three cars carrying Tinsley's entourage outside a downtown Indianapolis hotel. Tinsley wasn't hurt, but Pacers equipment manager Joey Qatato was struck in both elbows as he sat in one of the cars.

Tinsley has career averages of 10.4 points and 7.0 assists.

Terms of McRoberts' multiyear contract were not disclosed Wednesday.

The Pacers made a qualifying offer to the 6-foot-10 McRoberts last month, making him a restricted free agent. The athletic post player averaged 2.4 points and 2.2 rebounds last season. He had career highs of 12 points and nine rebounds on April 8 against Toronto.

"We are very pleased to have Josh back," Bird said. "He's another player who fits into the core group of guys we want to build around."

McRoberts, who is from Carmel, Ind., said he was thrilled.

"This is home and I want to be part of what the Pacers are trying to do," he said.