Examining Pacers’ Salary Cap, Decisions for 2024 NBA Free Agency After Playoff Loss

Examining Pacers’ Salary Cap, Decisions for 2024 NBA Free Agency After Playoff Loss0 of 3

Pacers general manager Chad BuchananRon Hoskins/NBAE via Getty Images

Following a three-year absence, the Indiana Pacers returned to the postseason for the 2023-24 season.

All-Star Tyrese Haliburton and Pascal Siakam helped transform the squad from middling team in the Eastern Conference into a real contender over the past few months.

With Indy getting solid contributions from the likes of Aaron Nesmith, Myles Turner and Obi Toppin, the Pacers climbed the standings throughout the year. Head coach Rick Carlisle finally reached the postseason in Year 3 before making a surprising run to the conference finals.

Now that Indiana’s playoff run is over, though, it’s time for Carlisle and general manager Chad Buchanan to start planning for next year. The Pacers showed that they can go head-to-head with the league’s best in the regular season and playoffs. Now it’s time for them to take the proverbial next step.

The Pacers reached the conference finals for the first time since 2013-14 before getting swept by the Boston Celtics. Now the team will look to compete for a championship.

Here, we’ll examine Indiana’s salary cap outlook, top impending contract decisions and some potential top targets for 2024 free agency.

2024 Salary Cap1 of 3

Tyrese HaliburtonDylan Buell/Getty Images

The Pacers and Haliburton agreed to a five-year max extension last summer, which will keep Indiana’s centerpiece in the fold for the foreseeable future. It also leaves Indy with 11 players under contract entering the offseason.

As a result, the Pacers are facing a projected practical cap deficit of $66.4 million. However, they’re set to be $68 million under the luxury tax threshold and aren’t in any real danger of exceeding the second apron.

The second apron is a relevant threshold for Indiana if it plans to be active on the trade market. Due to restrictions included in the new collective bargaining agreement (CBA), teams over the second apron are prohibited from aggregating contracts to trade for a single player, sending out cash in trades, using trade exceptions from previous years, or taking back more salary than it sends in a trade.

This doesn’t necessarily mean that Indiana will be especially active in the trade or free-agent markets, but Buchanan will have some flexibility in roster construction.

Top Contract Decisions2 of 3

Pascal SiakamMelissa Tamez/Icon Sportswire via Getty Images

If the Pacers are hoping to keep the band together, they’ll have some work to do. The first order of business will likely involve Siakam, who was a costly addition before the trade deadline.

To acquire Siakam, Indiana sent Bruce Brown, Jordan Nwora, Kira Lewis Jr. and three first-round picks to the Toronto Raptors. The Pacers did inherit Siakam’s Bird rights, but the 30-year-old is set to be an unrestricted free agent.

Of course, the expectation after Siakam was traded was that Indiana wouldn’t let him get away.
NBA insider Marc Stein wrote the following in January (h/t Bleacher Report’s Adam Wells).

“The Pacers only have one max player in the organization as we speak,
scant history of splashes in free agency and thus have ample motivation
to take advantage of acquiring Siakam’s Bird Rights this summer by
securing him as a long-term sidekick for Tyrese Haliburton and Myles
Turner.”

Siakam has done nothing to suggest that he isn’t interested in staying put.

“I want to make this home, so I’m excited that everyone is embracing me,” he told Bally Sports Indiana on January 25.

It’ll be a fairly significant surprise if Siakam isn’t in the Pacers lineup next season. The Pacers also have Bird rights for Doug McDermott, Kendall Brown, James Johnson and Toppin, who is a restricted free agent.

Forward Jalen Smith has a player option for the 2024-25 season.

Free Agents to Pursue3 of 3

Thunder F Gordon HaywardJesse D. Garrabrant/NBAE via Getty Images

According to ESPN’ Bobby Marks, the Pacers can sign Siakam to a five-year, $247 million deal this summer. Indy’s approach to free agency could change drastically depending on whether or not that deal gets done.

If the Pacers focus on retaining Siakam, Toppin and the rest of their core, they’re likely to land in the non-taxpayer’s mid-level exception range. Oklahoma City Thunder forward Gordon Hayward could be a terrific target on a relatively team-friendly deal.

Hayward is a role-versatile player who would aid the Pacers with rangy shooting, rebounding and depth. The fact that this would be a homecoming of sorts for the 34-year-old—who played his high school and college ball in Indiana—would be a bonus.

Philadelphia 76ers guard De’Anthony Melton, who played on a modest $8 million salary this past season, is a 3-and-D option Indiana should heavily consider.

If the Pacers choose to buck their recent trends and go after a big name on the open market, a reunion with Los Angeles Clippers standout Paul George might be in the cards. George has a player option with the Clippers for the 2024-25 season, but there’s no guarantee that he will opt in or extend this summer.

The Sixers have been linked to George, and Yahoo Sports’ Jake Fischer reported in early February that the nine-time All-Star could find Indy a suitable destination.

“There have been growing whispers not only of Philadelphia’s eye toward George, but also George’s own intrigue by returning to Indiana and becoming the latest running mate for Tyrese Haliburton alongside Siakam,” Fischer wrote.

George was drafted by the Pacers 10th overall in 2010 and played for the franchise until he was dealt to the Thunder in 2017. George returning to help the Pacers chase a title would instantly become one of the offseason’s top storylines.

*Cap and contract information via Spotrac.