The Indiana Pacers are currently sitting at roughly $206.3 million in team salary right now, which is a wild number when you realize the luxury tax line for the 2026-27 NBA season is $200.428 million. That puts them over the tax with 14 guys locked into standard contracts, and honestly, if no money-saving moves happen before the league year ends, it means a twenty-year streak is about to bite the dust.
The “Never Pay Tax” Streak Is On The Line
Seriously, two decades. The Pacers haven’t been a tax-paying team since the 2004-05 season. For twenty years, they’ve always finished below that luxury tax line, even collecting money from other tax-paying teams around the league. Think about it: since 2005, the only NBA teams that have never crossed that threshold are the Pacers, Memphis Grizzlies, Detroit Pistons, Charlotte Hornets, and Sacramento Kings. That’s a pretty exclusive club, right? Whispers suggested they might’ve been willing to cross it in the 2025-26 season, especially after that insane run to the NBA Finals, but Tyrese Haliburton’s injury totally flipped the script, and then Myles Turner walked in free agency. Since 2001-02, they’ve only gone over the tax barrier three times. This feels different. This is a deliberate push.
How They Got So Expensive, So Fast
So, what happened this offseason to put them in this super rare position? They went out and added Kelly Oubre and Larry Nance in free agency, bringing some serious talent to the roster. Plus, they held onto guard Quenton Jackson, keeping that core together. The only salary that went out the door was when they waived center Micah Potter. Basically, they got more expensive this summer, and it was by design! They’re clearly trying to win at a high level this year. These transactions, stacked together, pushed their total team salary right up past that tax line. It shows they’re committed to making a run.
The good news? The luxury tax is calculated at the end of the league year. So, this isn’t a done deal yet. If they can shed some money in trades during the season, they can still get back under the tax. Remember 2025, when they made that Finals run? They traded injured center James Wiseman, freeing up a roster spot and some cash. And after snagging Pascal Siakam in early 2024, they were looking at a pricey 2024-25 season. They responded by trading Buddy Hield for Doug McDermott (who later signed elsewhere) and losing Jalen Smith in free agency, all helping to manage the books. Their success this season will definitely be a huge factor in whether they make any financially driven moves down the line. It’s going to be a fascinating season to watch what moves they pull off next!
This article was created with AI assistance and published under Seattle On Tap’s editorial standards. See our Editorial Policy.
Originally reported by Yahoo Sports.
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