INDIANAPOLIS – Brian Windhorst reports that Indiana Pacers ownership has warmed up to paying the luxury tax. He said, “Ownership will greenlight them going a little bit into the tax for a little while.” That marks a major shift. Indiana last paid the luxury tax back in 2005-06. Since then, they prided themselves on staying under the threshold. Yet, their recent success—reaching the NBA Finals—has changed priorities. The team wants to keep momentum, and that may cost some extra dollars.
Pacers Face Luxury Tax Test with Myles Turner Decision
Turner’s Market Value Has Soared
Myles Turner hasn’t signed an extension because his two-year deal expires this season. The NBA rules don’t allow teams to offer players extensions if the player signs a two-year deal in free agency. Now he’ll hit unrestricted free agency. Turner averaged 15.6 points, 6.5 rebounds, and 2.0 blocks in the regular season on 48.1/39.6/77.3 shooting. In the playoffs, he’s stepped up—15.2 points, 4.9 rebounds, and 2.3 blocks on 52.5/40.3/77.6 splits. He’s blocked shots, spaced the floor, and protected the rim. His stock has never been higher. Turner reportedly wants north of $30 million per year. That would push the Pacers into luxury tax territory.
Bird Rights Give Indiana an Edge
Thankfully, the Pacers hold Turner’s Bird rights. They can outbid other teams without worrying about matching offers. If they value his defense and 3-point shooting the way they say they do, they can pay him. But doing so means dipping their feet into the luxury tax. Without Turner’s contract, they sit about $20 million below the tax line. Offering him more than $30 million annually plunges them over. Still, staying competitive means making tough choices.
Isaiah Jackson’s Bench Role in Question
Isaiah Jackson, once expected to be the reserve center, tore his Achilles in November. Now he’s rehabbing instead of contributing. That left a gap at the backup big spot. Thomas Bryant and Tony Bradley have filled that role. With this new intel, it makes Jackson’s uncertain future a bit clearer. With the Pacers willing to enter into the luxury tax to keep it’s free agents, Jackson should return on a team-friendly two or three-year deal.
Mathurin’s Extension Looms
Bennedict Mathurin becomes eligible to sign his rookie extension on July 1st. He’s blossomed as a reliable scorer and defender. Securing Mathurin keeps their young core intact. But it also adds more salary to the ledger. The Pacers luxury tax conversation then expands beyond Turner. Adding both Turner and Mathurin means strategic cap management. Indiana needs to decide how much luxury they’ll embrace to keep this group together.
Building a Finals-Caliber Roster
No team was projected to reach the Finals this year, but Indiana defied odds. They swept the Knicks in the East Finals, punching their first Finals ticket in 25 years. Now they must decide if they’ll invest in a title chase or maintain fiscal caution. The Pacers’ success makes it tempting to spend. If the Pacers decide to dip into the luxury tax, that’ll signal commitment to winning now.
The Final Call: Value vs. Discipline
The Pacers face a dilemma: pay Turner what he’s worth or walk away. They can avoid tax penalties by letting him test the market. But that could cost them a shot at repeating deep playoff runs. Ownership, with this new intel, is signaling that Turner’s impact is worth the long-term financial implications of entering the tax.
In the end, the Pacers’ luxury tax decision isn’t just numbers on a page. It’s about seizing a unique championship window and deciding how much they’re willing to spend to keep it open.
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