Former NBA front office member shares reasoning why Indiana Pacers should spend into luxury tax

The Pacers may have to think about the tax soon

Mar 27, 2024; Chicago, Illinois, USA; Indiana Pacers forward Obi Toppin (1) and forward Jalen Smith (25) fight for a rebound. / David Banks-USA TODAY Sports

INDIANAPOLIS — On a recent episode of the Lowe Post podcast, ESPN insiders Boddy Marks and Zach Lowe pondered about the Indiana Pacers future spending heading into an interesting offseason for the blue and gold.

The Pacers just made the Eastern Conference Finals far earlier than anyone expected. They are a young, ascending team, and internally they hoped to make it to the conference finals by 2026. It happened already, and now their team building plans are unique.

There is good sense in running it back for the Pacers front office, but they could also look for external upgrades to a talented roster. After a solid season, many options are on the table, and some of them include building a team that is expensive enough to pay a luxury tax bill next season.

Should the Pacers bring back Pascal Siakam and Obi Toppin while also looking for upgrades, they may cross next season's currently-projected $171.3 million luxury tax line, which would force them to pay a tax bill and not receive a tax distribution from other teams. How Indiana handles their finances going forward is worth monitoring.

"I think Mr. Simon (Pacers owner Herb) has been super supportive... I know they want nothing more than to bring a championship," Pacers general manager Chad Buchanan began when asked if the Pacers would have an appetite for paying the luxury tax soon. "I think if we get to a point where we feel like this is a move that could get us into a championship spot, I think ownership would get behind that," the GM added.

On a recent episode of the Lowe Post podcast, Lowe and former Brooklyn Nets assistant GM Marks debated Indiana's potential spending habits. Lowe believes that the blue and gold should try to keep Toppin since he is talented and a good fit on the roster.

Marks then chimed in on Indiana's possible luxury tax thinking in the coming seasons. "Here's a little bit of a theme that's starting to develop out here in Chicago [for the NBA Draft Combine]... the big thing is, you hear it, don't worry about the tax," the former assistant GM said. "Worry about the apron." The first apron is above the luxury tax line and may be a more important number for teams to worry about in the future with tax rules soon to change and become more feasible for slightly over the luxury tax line teams.

"I think Indiana is going to spend, even if it means dipping their toe into the tax, to keep this roster together," Marks added without specifying what year he believes the Pacers could spend into the tax.

The entire episode and insightful conversation can be found here.

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• The Pacers made it to the Eastern Conference Finals faster than they thought. What does that mean in the offseason? CLICK HERE.
• Indiana Pacers GM says team would 'hate to lose' guard T.J. McConnell, praises his strong season. CLICK HERE.
• Report: 'Mutual interest' between Indiana Pacers and Pascal Siakam in NBA free agency. CLICK HERE.
• Where Indiana Pacers players finished in voting for 2024 NBA league awards. CLICK HERE.
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