The Indiana Pacers Luxury Tax Dilemma

Myles Turner is in trade rumors for all the wrong reasons. I explain why their upcoming luxury tax crunch may be the root of it, and examine if the new tax rates could convince the Pacers to pay tax.

Myles Turner’s name has resurfaced in trade rumors again, which doesn’t seem to make a whole lot of sense for the Pacers right now. They are 16-5 in their past 21 games after a rough 10-15 start. They are fresh off an Eastern Conference appearance and are looking to advance further in the playoffs. Why would they move such an important part of their success?

A major cause for speculation is that he is set to hit free agency this offseason and the Pacers could be apprehensive about giving him a new long-term deal. The other more pressing aspect is that the Pacers will enter the luxury tax next season if they re-sign him without cutting costs elsewhere. The expectation is that they will duck the tax, but it’s worth exploring how the new CBA has modified the tax system to make it more tenable for teams like the Pacers to pay some tax.