Any good negotiation always starts with leverage. The Indiana Pacers lost a huge bargaining chip over Paul George when George failed to make one of the three All-NBA teams.
George might not be one of the six best forwards but he is certainly one of the best 15 players in the league. Any team that trades for him would immediately become a playoff contender, and if the right team trades for him they could become a championship contender.
Right now, Indiana has George under contract for another season, which gives them another year to prove they can be good enough to compete with George.