Examining Pacers' Salary Cap, Decisions for 2025 NBA Free Agency After Finals Loss
Though the Indiana Pacers weren't really sleepers this past season, few probably expected to see them hanging tough with the Oklahoma City Thunder in the NBA Finals.
The Pacers made a surprising playoff run a year ago, making it to the Eastern Conference Finals before losing to the eventual-champion Boston Celtics. Entering the 2024-25 NBA season, Indiana was unlikely to take anyone by surprise.
It turns out, it never really needed to.
Led by standouts Pascal Siakam and Tyrese Haliburton, Indiana made another strong push into the playoffs. While the Pacers never caught the Cleveland Cavaliers and Celtics at the top of the Eastern Conference standings, they outlasted both during the postseason.
The Pacers rolled the Cavs in a 4-1 series to set up a date with the New York Knicks in the Eastern Conference Finals. Winning a six-game series sent the Pacers to the Finals, where it ultimately fell to the Oklahoma City Thunder in seven games.
Now that Indy's postseason has come to an end, however, head coach Rick Carlisle and general manager Chad Buchanan face the challenge of reloading for another run next season.
Unfortunately, that task became tougher when Haliburton suffered an Achilles injury in Game 7 on Sunday night.
Here, you'll find a look at the Pacers' salary cap situation, biggest upcoming contract decisions and potential targets for 2025 free agency—which will officially open on July 6.
2025 Salary Cap
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While the Celtics and Cavaliers may soon feel the squeeze of being above the luxury tax—and, specifically, the restrictive second apron—the Pacers should have a good amount of flexibility this offseason.
Indiana is projected to be $27.5 million under the first tax apron and $39.4 million below the second apron. While the Pacers are still set to $71.7 million above the NBA's soft cap, they shouldn't face the massive restrictions of being above the second threshold.
The Pacers are also set to have most of their core players under contract for the 2025-26 season. That includes Siakam, Haliburton, Obi Toppin and Andrew Nesmith.
While Buchanan may dip into the coffers to address a few internal contract situations, the Pacers can afford to be players in free agency if they so choose.
Top Contract Decisions
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The Pacers only have three players scheduled to be unrestricted free agents—Myles Turner, James Johnson and Thomas Bryant. Indiana also has a club option for Tony Bradley and has Isaiah Jackson and two-way player Quenton Jackson as restricted free agents.
Of this group, Turner is likely to be Indiana's top priority. The 10-year vet has spent his entire career with the Pacers, and the early indications are that Indy wants him back.
"Team sources told me the Pacers absolutely want to keep Turner," ESPN's Brian Windhorst wrote in March. "...They are currently projected to be about $22 million below next season's luxury tax without Turner, and he'll probably be looking for a significant raise on his current $19.9 million salary."
Re-signing Turner could quickly put the Pacers over the first tax apron and limit their flexibility with external free agents. It would be a fairly large surprise, though, if Indiana allows him to walk without a very strong offer.
The Pacers will also have a decision to make regarding Bennedict Mathurin, who will be extension-eligible this summer. The 2022 first-round selection has established himself as a significant contributor and offensive creator who is deserving of a long-term commitment.
Mathurin is scheduled to be a restricted free agent in 2026, so if he isn't extended, h could become a trade chip in the upcoming season.
Free Agents to Pursue
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Unlike many other Eastern Conference playoff teams, Indiana could be active in free agency—though a lot will depend on how things unfold with Turner and whether the Pacers feel they need to add pieces immediately.
Indiana recently traded away its 2025 first-round pick and Mojave King to reacquire its 2026 first-rounder from the New Orleans Pelicans. The Pacers are now highly unlikely to add a key contributor through the draft.
If Turner departs, Indiana will be in the center market. That could lead to a run at Naz Reid (player option) or Brook Lopez in the summer. Even if Turner is back, adding a depth center like Marvin Bagley III or Mo Bamba would be advisable.
Regardless of what Indiana does at center, it could use some improved three-point shooting. Range specialists like Malik Beasley, Dennis Schröder and Luke Kennard would be very logical targets for the Pacers.
Overall, though, fans shouldn't expect Buchanan and team president Kevin Pritchard to go on a spending spree. Indiana has historically tried to avoid the luxury tax, and there's little reason to believe the organization will deviate from that plan in 2025.
If the Pacers manage to lock up Turner, that'll probably be their big move of the offseason. Any other moves made in free agency will likely be centered on the fringes of Indiana's roster.
*Cap and contract information via Spotrac.
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