Pacers granted disabled player exception for Tyrese Haliburton. Here's what that means
Chad Buchanan and the Indiana Pacers know the 2025-26 season will be a challenge with Tyrese Haliburton out with an Achilles tendon tear and center Myles Turner gone to the Bucks, but he's not interested in viewing it as a "gap year."
"People will say this is a gap year for the Pacers," the Pacers general manager said this week on the podcast "Setting the Pace" with hosts Alex Golden and Michael Facci. "We don't view it that way. That's never been how we've operated. We go out there to try to compete to win every season. There are certain seasons when circumstances make it difficult. I'm not saying that's what this year is because I think we have a very good core group of guys returning who want to win and had a great experience last year."
It's not easy to peg exactly where the Pacers' expectations ought to be, but Buchanan made clear the Pacers do intend to try to make the most of the roster they have and will look at opportunities to improve it after their first NBA Finals run in 25 years.
The Pacers only kind of have a roster spot available — they currently have 15 players on standard contracts, but Buchanan noted on multiple occasions center Tony Bradley's contract is not guaranteed so they could waive him without any form of penalty. However, they have multiple exceptions with which they could add players and take on salary if they choose to do so and they have added another one.
Missing out on re-signing Turner kept the Pacers below the luxury tax, which means they have access to the non-taxpayer mid-level exception which would allow them to sign free agents for up to $14.1 million in first-year salary. The Pacers have not yet used any of that exception. They also applied for and got a disabled player exception for Haliburton, Buchanan said, which serves as another exception worth up to $14.1 million.
The NBA doesn't have an injured reserve like the NFL or an injured list like Major League Baseball, so injured players still count against the 15-man roster. The only way a team can go above the 15-man limit is if they are granted a hardship waiver during the season and that requires at least four players to have significant injuries. The league has to approve it by finding it is unlikely the player will be able to return by June 15 of the season in question. The exception allows a team to take on one player through either trade or free agency for that season only and be paid either half of the disabled player's salary or the non-taxpayer mid-level exception, whichever is lower. Haliburton is due $45.55 million this season on a max contract, so the non-taxpayer mid-level is the lower figure.
There aren't many players if any remaining on the market who are worth that kind of salary who would want to sign a one-year deal, but the Pacers could obviously use it to take on somebody making much less. Buchanan didn't guarantee the Pacers would even use the exception, but said it was helpful just to have it especially as they try to make sure they have some trustworthy depth at point guard beyond Andrew Nembhard and T.J. McConnell with Haliburton out.
"Whether we use it or not, it depends," Buchanan said. "Using the full exception would put us in the luxury tax, which we're not opposed to if it's the right player. But I think if there is another position that we maybe look at — and we're not pursuing it super hard right now — is another point guard."
The Pacers took combo guard Kam Jones from Marquette in the second round of the draft with the No. 38 overall pick and they have at least two guards set to be on two-way contracts in Quenton Jackson and RayJ Dennis with Dennis being the most pure point guard of the group. Buchanan said while the Pacers will keep an eye out to improve that position, they're also OK with what they have there.
"Part of the strength of our coaching staff is their ability to develop players," Buchanan said. "Those three guys (Dennis, Jackson and Jones) are all relatively young players that we have here for a reason. We believe in them. We like them. We like what they do, how they fit with us."
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