The Indiana Pacers haven't paid the luxury tax in 20 years. But if they want to be title contenders for the long run, they have to be willing to change that philosophy.
Last offseason, there was a lot of talk about whether the Pacers would be willing to pay the luxury tax to bring Myles Turner back in free agency. The jury is still out on what exactly happened, but fans may have gotten their answer when Turner joined the Milwaukee Bucks after signing a four-year, $108.9 million contract.
Without the Texas native on their payroll, the Pacers once again avoided the luxury tax. However, they're going to have some big decisions to make soon, and whatever they choose to prioritize could have a direct impact on their championship window.
The Pacers need to be willing to spend
According to Spotrac.com, the Pacers are roughly $5.8 million below the luxury tax threshold this season. And barring any type of big move ahead of this year's trade deadline, they will likely avoid paying the luxury tax for at least one more season. However, this will be tested as soon as this summer.
Bennedict Mathurin is an impending restricted free agent after Indiana chose not to sign him to a rookie-scale contract extension last offseason. The Pacers can opt to trade him ahead of the deadline and avoid having to pay him a new contract, but doing so is incredibly risky given how talented he is and how valuable he can be for the long haul.
At the same time, though, signing him to a new contract would almost inevitably push them into the luxury tax. Or at the very least, it would bring them much closer to it. And at that point, it becomes a question of whether the Pacers are prioritizing their financial situation or their roster construction.
Even beyond Mathurin, there are a lot of names to keep an eye on in Indiana.
It's still a long time away, but the Pacers only have two players under contract for the 2028-29 season: Tyrese Haliburton and Aaron Nesmith (T.J. McConnell and Kam Jones have team options). Everybody else, including Pascal Siakam, Andrew Nembhard, and Obi Toppin, will all need new contracts by then.
And this isn't even factoring in other additions, such as draft picks (including a potential top pick this year) or other trades or free agents Indiana may acquire down the line.
In theory, the Pacers could be able to get away with keeping their roster together without having to pay the luxury tax. But whether they would be willing to open up their wallets just to keep their core together (which could be a championship-winning one) is a completely different question they need to answer soon.