Knicks vs. Pacers: Indiana is reportedly considering going into the luxury tax to keep Myles Turner, but it shouldn't stop there

Yahoo

26-05-2025

With the Indiana Pacers leading the New York Knicks 2-1 in the Eastern Conference finals — the second consecutive season they've advanced that far in the playoffs — ESPN's Brian Windhorst reported something that ought to be great news to Pacers fans:
The franchise is considering going into luxury tax territory to keep starting center Myles Turner, who will be an unrestricted free agent this summer.
Turner, who's on one of the best deals in the NBA, is earning $19.9 million this year, a ridiculously low price for what he offers as a two-way center.
The Pacers' willingness to spend isn't just good news because of Turner's production (16.5 points per game and nearly 38.9% from 3-point range this postseason, along with elite defense), but also because of the current direction of the team and the franchise's overarching vision.
Imagine a scenario where the Pacers made two straight conference cinals, only to cheapen out in the offseason and lose their starting center of the past decade who's only a recently turned 29.
That wouldn't just be organizational malpractice, as that'd be tearing down a legitimate championship contender, but it'd send a message to Pacers fans that the organization is unserious.
Fortunately, the report is pointing in the opposite direction, and why shouldn't it?
The Pacers went aggressively after both Tyrese Haliburton and Pascal Siakam in trades with the Sacramento Kings and Toronto Raptors, respectively, and they've gone out of their way to build a product that fits alongside those two.
The Pacers are elite as a direct result of that roster construction, which puts the onus on both team president Kevin Pritchard and team owner Herb Simon to keep building.
That doesn't just mean finding outside help, but also retaining key pieces. Turner will be looking at a hefty raise, and he's earned it based off years of consistent play, particularly defensively. If he signs a new four-year deal, he'll be 33 when it expires.
Even if the final year of that deal proves a little heavy, depending on his salary, the year-to-year cap increases (estimated to be 10% every summer due to the league's new TV deal) will have his cap-percentage decline every season moving forward, which should negate concerns of Turner clogging up the cap.
Of course, the Pacers won't just re-sign Turner and call it a day.
Bennedict Mathurin will be extension eligible this summer, and should he not sign an extension before the start of next season, he will enter next summer as a restricted free agent. However you slice it, his salary will jump between the 2025-26 and 2026-27 seasons, adding more money to Indiana's cap, unless it makes a move to flip him for someone on a longer deal.
In 2027, Aaron Nesmith will need a new deal. Like Turner, Nesmith is enormously underpaid for what he offers, so he too would look for a strong increase in pay.
Given how important he's been to their success in the playoffs, the Pacers won't win any PR battles if they let him walk and attempt to belittle his efforts on the way out as justification.
This is all to say that the bill is coming — and soon — for these Pacers, and paying it is absolutely crucial if they have any hope of sustained success.
Their apparent willingness to enter the tax to keep Turner is obviously a positive sign, but it can't end there. The organization has to carry that same mindset onto other players, especially those who have proven crucial to its success.
Are there areas in which they can help offset some of those rising costs? Potentially.
T.J. McConnell is 33 years old. In two years, when Nesmith needs a new deal, McConnell will be 35 and perhaps at a point where the Pacers can get away with having Andrew Nembhard absorb a portion of those minutes — especially as his new extension triggers this summer.
It's also fair to wonder if Obi Toppin is expendable in some capacity. He's got another $45 million on his deal after this season, and considering he's playing under 17 minutes per game during the playoffs, one would assume the Pacers could find ways to better utilize his salary slot.
All that said, the main priority for the Pacers shouldn't be to duck the tax moving forward, nor should it be to dip their toes into it briefly, just to show the fan base they kept Turner. They have a genuine window to win the title, and that window could be open for another three or four years if they play their cards right and shell out to keep momentum going.
If they do, they not only stand a decent chance of winning a ring, but also to rid themselves of the reputation of being a cheap franchise, something that's followed them for decades.