Damon Bailey (born October 21, 1971 in Heltonville, Indiana) is a retired American basketball player, who has been regarded as a basketball idol in the state of Indiana since Indiana University head coach Bob Knight called him a "hot prospect" when Bailey was in eighth grade. His fame spread through the state after his four consecutive first-team all-state selections in high school. In 1990, at the Hoosier Dome in Indianapolis, the Bedford-North Lawrence High School Stars won the state championship in a comeback victory in front of a crowd of more than 41,000 people,(the most people to ever attend a high school basketball game), with Bailey scoring his team's final 11 points. He finished high school as the state's all-time leading scorer, with 3,134 points during his basketball career. Bailey captured the title of Indiana's "Mr. Basketball" during his senior year.
After his high school years, Bailey played under Knight at Indiana University, along with other IU greats, including Calbert Cheaney, Alan Henderson, and Greg Graham. A four-year starter there, Bailey finished sixth on the school's all-time scoring list with 1,741 points. He also garnered a third-team All-American award, first-team All-Big Ten award, and he led IU to a Final Four appearance in 1992.
Bailey was selected with the 44th overall pick in the 1994 NBA Draft by his hometown Indiana Pacers, much to the delight of basketball-crazy Hoosiers. These Indiana natives thought they would get the chance to see their hero play basketball in Indiana again. They were sorely disappointed, however, as Bailey was cut after one season on the team's injured list and a series of pre-season games the following year. He played in the Continental Basketball Association (CBA) for a number of years before returning to Indiana to start a series of basketball camps for kids. He was later employed as the boys' basketball coach for his alma mater, Bedford-North Lawrence High School. The team finished 11-10 in Bailey's first coaching year. The Bedford Times-Mail reported on March 1, 2007 that Bailey had resigned as coach of BNL after two seasons.
Damon Bailey is a member of the IU Athletics Hall of Fame, inducted in 2007.