The Pacers are changing their tune after indicating they might be willing to go over the luxury tax for the first time in 20 years.
Free agent center Myles Turner had wanted to sign an extension to return, and ESPN reported during the Finals that Indiana was ready to dip into the tax for the first time in nearly two decades in order to do it. “They want to keep this team intact and make a real run not only this season, but for the next few seasons to come,” ESPN’s Shams Charania said at the time.
Then Tuesday morning, everything changed. In a shocking move for both sides, the Milwaukee Bucks waived star Damian Lillard, who is coming back from a torn Achilles, and signed Turner to a four-year, $107 million contract, according to ESPN.
The longest-tenured Pacer hadn’t changed his stance, but the Pacers did. Tyrese Haliburton’s own torn Achilles sustained in Game 7 of the Finals made the Pacers more unwilling to go above the luxury tax, ESPN reported. The Pacers had paid Turner about $20 million each of the past two seasons.
In Milwaukee, it was a move to build around Bucks star Giannis Antetokounmpo, whose future in Wisconsin remains uncertain.
The NBA announced Monday that next season’s salary cap will be $154.647 million, while the tax begins at $187.895 million. Some projections had expected those figures to be slightly higher, giving teams more wiggle room to build around superstars.
Haliburton’s cap hit next year will be $45.5 million, as will Pascal Siakam’s.
The Pacers knew they would enter the luxury tax when they re-signed Halburton and Siakam if they wanted to keep Turner. They still would’ve avoided the harsh second apron. But with Haliburton’s future uncertain, Indiana let their 11th overall pick from the 2015 draft walk after floating him in rumored trades for years.
