Nov 1, 2024; New Orleans, Louisiana, USA; Details view of the Indiana Pacers logo against the New Orleans Pelicans during the second half at Smoothie King Center. Mandatory Credit: Stephen Lew-Imagn Images Stephen Lew-Imagn Images

Pacers Front Office Decision Ripped Apart By NBA Insider as True 'Achilles Heel'

Originally posted on Indianapolis Pacers on SI
By Alex Kirschenbaum | Last updated Jul 27, 2025 12:30 PM ET

Despite piecing together a team that has made two Eastern Conference Finals in as many seasons and pushed the Oklahoma City Thunder to seven games in last month's NBA Finals, the Indiana Pacers' front office has come under fire for one major reason.

As Bryan Toporek of Forbes writes, Indiana's front office has been notoriously reticent to dip into the NBA's luxury tax over the years.

The Pacers have not paid into the luxury tax for the past 21 straight seasons. With the latest CBA effectively making the punitive second luxury tax apron a hard cap, it's now looking even less likely that trend lets up anytime soon — despite the club fielding one of its deepest, most talented rosters ever.

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Toporek concedes that it doesn't make much sense for the Pacers to dip into the luxury tax at this juncture, given that their best player, two-time All-NBA point guard Tyrese Haliburton, will miss the entire season recovering from a right Achilles tendon tear.

Man. Don’t know how to explain it other than shock. Words cannot express the pain of this letdown. The frustration is unfathomable. I’ve worked my whole life to get to this moment and this is how it ends? Makes no sense.

Now that I’ve gotten surgery, I wish I could count the… pic.twitter.com/UyY0iFEp6Z
— Tyrese Haliburton (@TyHaliburton22) June 24, 2025

"Teams that cross the tax line do forfeit the distribution that they receive from taxpaying teams, which might have factored into the Pacers' thinking," Toporek adds. "Rather than pay the tax for a team that isn't likely to contend for a championship this year, they can treat this season as a retool year and collect an eight-figure payday from taxpaying teams in the meantime."

But opting to not dip into the luxury tax in perpetuity may hurt Indiana's long-term chances, opines Toporek.

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"If the Pacers refuse to cross the luxury-tax line upon Haliburton's return in 2026-27, they could effectively be trading an Achilles tendon for an Achilles' heel," Toporek writes.

At present, Indiana is $6.1 million below the league's $187.9 million luxury tax line. The Pacers haven't inked anyone to their $14.1 million non-taxpayer mid-level exception or their $5.1 million bi-annual exception. Sixth man shooting guard Bennedict Mathurin is eligible for a rookie-scale contract extension, and would reach restricted free agency next summer if no deal was reached.

"There's no rule stopping the Pacers from crossing into luxury-tax territory. They could even cross the first apron as long as they didn't hard-cap themselves," Toporek notes. "That would give them a puncher's chance of retaining the depth that helped them throughout their memorable playoff run. But if they continue to balk at paying the tax, they might find it difficult to keep up with other title hopefuls even once Haliburton returns from his Achilles injury."

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For more news and notes on the Indiana Pacers, visit Indiana Pacers on SI.

This article first appeared on Indianapolis Pacers on SI and was syndicated with permission.

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