Pacers Exec Opens Up About NBA’s Restrictive Salary Cap Rules
The Indiana Pacers are adapting to the NBA’s new collective bargaining agreement (CBA) and its impact on luxury tax spending, just like every other team. The franchise faced these challenges while negotiating Myles Turner’s contract. Traditionally, the Pacers have avoided luxury tax territory, but they were willing to go over it to re-sign Turner. However, their offer wasn’t aggressive enough, leading Turner to move to Milwaukee. Indiana has managed to stay under the luxury tax for 20 years.
Recently, Pacers assistant GM Ted Wu shared his thoughts on the league’s new tax rules and how the team plans to navigate them. He expressed that the Pacers view the new CBA as beneficial to maintaining competitive balance in the NBA. “That was a big part of the new CBA’s purpose, to prevent teams from dominating through unlimited spending. If the league had its choice, they might even consider a true hard cap,” Wu explained. While the second apron isn’t technically a hard cap, it’s being referred to as one by many executives, due to its steep penalties for teams exceeding it in consecutive seasons. The Pacers have never been close to reaching such financial thresholds, and under owner Herb Simon, it’s unlikely they ever will. The team will continue to operate just below the luxury tax.
In terms of spending, the new CBA doesn’t change the Pacers’ approach. They’ll keep seeking cost-effective contracts and making thoughtful financial decisions. President Kevin Pritchard has said the Pacers are willing to invest in keeping a winning roster intact. Their first test in that area fell short when they couldn’t retain Turner, although an injury to Tyrese Haliburton might have impacted their ability to keep him. After next season, fans will get a clearer picture of how committed ownership is to maintaining a competitive group capable of contending for a championship.
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