Pacers may break the luxury tax for the first time in 20 years! Expenditures for the crown window are upgraded, and renewal of Turner has become the top priority

On June 2, according to ESPN reporter Vincenster, the Pacers are expected to pay luxury tax for the first time since the 2004-05 season, marking a major change in the team's consistently conservative spending strategy in history. The Pacers last entered the luxury tax field twenty years ago, when the team debuted in the 2004 Eastern Conference Finals and had real championship strength. Now, with two consecutive division finals and being played in the finals, the Pacers’ management seems ready to pay a luxury tax to continue to be competitive.

Venthorst revealed: "As far as I know, everyone's hope and belief is that management will approve the team to slightly exceed the luxury tax line for a period of time." The main catalyst for the Pacers to enter the luxury tax ranks will be to renew center Miles Turner in the free agent market. Turner's expected new contract will put Pacers past the luxury tax threshold, ending their twenty-year tax avoidance history. The Pacers have offered Halliburton a maximum salary contract that accounts for 30% of the salary cap (which he qualified for being selected for the NBA All-A-listed team), while Siakam also holds a four-year, $189.5 million maximum salary contract.

However, if management changes its strategy, the team still has the flexibility to stay below the luxury tax line. The Pacers may trade another rotation player to create the necessary salary space to maintain below the luxury tax line.

Regardless of the luxury tax decision, the Pacers' championship window seems to be very stable. Their key players have signed multi-year contracts:

Halliburton: Contract to 2029

Siakam: Contract to 2028

Nembhard: Contract to 2028

Obipin: Contract to 2028

Nesmith: Contract to 2027

Pacers are willing to pay luxury tax, which represents a change in management's philosophy. For much of its history, the Pacers management team has put financial responsibility first. Now with a true championship core squad and proven playoff success, the Pacers seem ready to make the highest level of investment to make the most of the current championship window.

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