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Pacers Waiting To Strike With ‘Use Or Lose It’ Cap Assets

July 25, 2025 by Last Word On Pro Basketball

INDIANA – The Indiana Pacers stand at a crossroads this offseason. A painful end to a magical run left them bruised but not broken. They watched the Thunder lift the Larry O’Brien trophy at the Payton Center. They also watched Tyrese Haliburton go down with an Achilles tear that changes everything.

Pacers Waiting To Strike With ‘Use Or Lose It’ Exceptions

Picking Up the Pieces

The Pacers have access to two sizeable exceptions - the non-taxpayer mid-level and a disabled player
Jan 30, 2023; Indianapolis, IN, USA; Indiana Pacers president of basketball operations Kevin Pritchard speaks during an Indiana Pacers press conference at Gainsbridge Fieldhouse. Mandatory Credit: Marc Lebryk-USA TODAY Sports

Losing Haliburton for the season hurt badly. Watching Myles Turner walk in free agency to join the Bucks only added salt to the wound. The Pacers responded quickly by trading for Jay Huff as Turner’s replacement. But outside that move, they have stayed quiet.

That silence hides something bigger. The Pacers still hold two powerful tools: the Non-Taxpayer Mid-Level Exception (NTMLE) and the Disabled Player Exception (DPE). These assets could lighten Haliburton’s absence if used wisely.

What Makes These Exceptions So Critical

The Non-Taxpayer MLE is a league-approved tool that lets teams below the luxury tax add talent. It’s worth around $14.1 million this season. They can sign a free agent or grab someone off waivers. But there’s a catch: it expires if not used by June 30.

It’s a true “use it or lose it” asset. If they don’t spend it, it’s gone.

The DPE exists for a single reason—replacing a player out for the year. Haliburton’s big salary let the Pacers get a DPE also worth about $14.1 million. They can spend it on one player for a one-year deal or trade for someone on an expiring contract. But the DPE dies March 10 if unused—or if Haliburton miraculously returns early before it’s used.

Buchanan’s Stance

GM Chad Buchanan made the team’s stance clear on the Setting the Pace Podcast. They refuse to sit idle. “We’re always going to be, if there’s an opportunity out there to help our team, we’re not going to turn our nose to that. And we have some tools to do that. We’re still below the luxury tax. We have exceptions that we can use as well.”

He also added, “We’re going to be scouring the market for a player that makes sense, for a player that can help us, you know people say this is a gap year for the Pacers. We don’t view it that way. If there’s a player out there that can help our roster, if it’s a back court player, we’re going to continue to look at that.”

That mindset explains why the Pacers haven’t jumped yet. They know the market might yield a better option later. Some contenders stash the DPE for emergency buyout deals near the trade deadline. The Pacers can do the same.

A Strategic Wait 

Holding the NTMLE and DPE gives the Pacers unique flexibility. They can chase a free agent with the NTMLE if the right name hits the market. Or they can swing a low-risk trade with the DPE if a good expiring player becomes available. The DPE works like a one-time trade exception. They don’t need to match outgoing salary. They can take on up to $14.1 million.

If they believe the roster can overachieve, a smart swing might push them over the top. If not, the Pacers could let both exceptions expire and move forward clean.

Their Destiny, Their Call

The Pacers know this season will test them. They also know they hold cards that few teams do. Cap flexibility. Smart front office. Two exceptions that open doors.

The Pacers will watch. They will wait. And when the moment is right, they’ll strike.

The post Pacers Waiting To Strike With ‘Use Or Lose It’ Cap Assets appeared first on Last Word On Basketball.

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