The Indiana Pacers could pay the NBA’s luxury tax for the first time in 20 years, general manager Chad Buchanan said during a recent appearance on “The Ride with JMV” on 93.5/107.5 The Fan.
Buchanan noted that the club’s current payroll projections place Indiana “right around” the expected $200.5 million tax threshold for the 2026-27 season. Any major addition through free agency or trade would likely push the team into taxpayer status for the first time since 2006.
“That’s a very real possibility,” Buchanan said. “We want to be aggressive and put this team in the best position to win a championship. For the right player, I think we’re going to spend.”
The GM stressed that ownership, led by Herb Simon, supports spending if it helps a roster the front office believes is in a win-now window. Still, Buchanan acknowledged the need to manage the league’s first and second aprons, which limit team-building options above certain salary levels.
Indiana’s tax outlook became clearer when the club lost its top-four–protected 2026 first-round pick in the draft lottery. Retaining that selection would have carried a cap hold exceeding $10 million, pushing the Pacers farther over the projected tax line. Without the pick, the team could either stay below the tax or cross it and later dip back under via an in-season move.
Historically, Indiana has rarely ventured into tax territory. Since the system began in 2001-02, only six franchises have paid less overall, and just four have gone longer without a tax bill.
The Pacers underscored their current urgency in February by trading that valuable 2026 first-rounder to the Clippers for center Ivica Zubac. Buchanan said the front office does not regret the decision—even after the pick landed at No. 5—because it preserved the team’s core and addressed a starting-center need.
“Regardless of how it turned out, I would still make this trade,” he said. “I’m a big believer in this group, in Zu, and in our coaches.” Buchanan added that Zubac was chosen over one other center who carried a similar acquisition cost.
Source: HoopsRumors
