Jun 22, 2025; Oklahoma City, Oklahoma, USA; Indiana Pacers center Myles Turner (33) looks to pass while Oklahoma City Thunder guard Cason Wallace (22) defends during the first half of game seven of the 2025 NBA Finals at Paycom Center. Mandatory Credit: Alonzo Adams-Imagn Images Alonzo Adams-Imagn Images

Pacers Exec Gets Honest About Restrictive NBA Cap Rules

Originally posted on Indianapolis Pacers on SI
By Ryan Stano | Last updated Aug 15, 2025 1:00 PM ET

The Indiana Pacers are learning how to deal with the new CBA rules when it comes to the luxury tax, just like every other NBA team. They learned that when it came to negotiating with Myles Turner.

Usually, the Pacers steer clear of the luxury tax entirely. They were willing to enter it in order to re-sign Turner, but they weren't forceful enough with their offer. So, Turner is now in Milwaukee.

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Indiana still hasn't paid the luxury tax in 20 years. An Indiana executive talked recently about the new luxury tax rules and how the Pacers will navigate that.

The Indiana Pacers are happy with the new cap rules

While speaking on Setting the Pace, assistant GM Ted Wu revealed that the Pacers believe the new CBA helps the competitive balance in the NBA.

"I think that was a lot of the intention of the new CBA, what the new rules of this CBA were trying to prevent. I think if the league had its way, a true hard cap is something that they would definitely entertain."

Executives around the league have essentially been calling the second apron a hard cap, even though it's not. The penalties for being in the second apron for multiple seasons are incredibly punitive.

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Indiana has never come close to reaching those kinds of spending numbers and likely never will as long as Herb Simon owns the team. They will continue to hover just below the luxury tax.

The Indiana Pacers will continue to spend judiciously

This new CBA does not change anything from Indiana's perspective on how to spend money. They will continue to try to find bargain contracts and try to spend money in the smartest way possible.

Kevin Pritchard has said that the Pacers will spend money to keep a winning team together. They failed that first test in bringing Turner in order to do that, although they may have if Tyrese Haliburton hadn't gotten hurt.

After next season, that's when Pacers fans will really start to learn just how committed ownership is to keeping together a group that made the NBA Finals and could win a championship.