It's only a $2M per year pay raise for West. That's not going to break the bank for the Pacers, especially when they're off the hook for $8M with expiring contracts in Augustin, Hansborough, and Pendergraph they're not bringing back. Granger's an expiring this year and he'll be the guy that makes room for George's hefty pay day.
Furthermore, West's game was never based off athleticism, so he will age very well in comparison to some others at 32 years old. I certainly wouldn't say this was a great deal, but I'd grade it a B.