This is something I found from ESPN:
The Pacers are being cautious during the free agent frenzy as they want to stay under the luxury tax threshold for the upcoming season and to preserve their cap room for 2011-12. With that said, they’re still hoping to land a point guard whether it’s via free agency or a trade.
“We’re moving along in the process of looking at what we want to do,” Pacers general manager David Morway told The Indianapolis Star. “We’re going to take a careful approach to see where the market is going to fall out, and then we’ll start to make decisions.”
“We’re certainly going to look to use part or all of the mid-level exception, but we have not finalized what direction we’re going to go right now,” Morway added.
At this time the Pacers are not going to try to buyout T.J. Ford’s contract.
Also, according to Marc Stein, Luther Head has signed a two-year $2.3M deal with the New Orleans Hornets.